Influence of Gst on Pricing Strategies and Market Competitiveness of Textile Businesses in Bangalore City

Abstract

This study investigates the implications of the Goods and Services Tax (GST) on the textile business in Bangalore City, a significant hub for textile manufacturing and trade in India. The implementation of GST in July 2017 marked a pivotal shift in the Indian taxation system, aiming to streamline tax processes and enhance compliance across various sectors. The textile industry, known for its economic contributions and employment generation, has experienced varied impacts post-GST implementation. This research employs a mixed-methods approach, integrating quantitative data analysis and qualitative interviews with stakeholders in the textile sector, including manufacturers, retailers, and policymakers, to capture a comprehensive understanding of GST's effects. The findings reveal that while GST has introduced a unified tax structure that facilitates ease of doing business and promotes transparency, it has also posed challenges such as increased compliance costs and complexities in tax filing. Furthermore, the study highlights the differential impact of GST on various segments of the textile industry, with small and medium enterprises (SMEs) facing more significant hurdles compared to larger corporations. Stakeholders expressed concerns regarding the classification of textile goods under GST, which has led to ambiguities affecting pricing strategies and market competitiveness. The research underscores the need for ongoing policy adjustments and support initiatives aimed at enhancing the adaptability of textile businesses to the new tax regime. Overall, the study contributes to the discourse on GST's transformative role in the textile sector, providing insights that can inform future policymaking and support mechanisms within the industry