As per available data, apparel production is continuous declining since August 2017. As per the industry sources, reasons for continuous decline can be attributed to lower demand for Indian-made garments in countries like the USA and UK and delay in IGST refunds.
It is fact that tax refund under GST is a serious problem even after passing one year of GST roll out. Refund of more than Rs. 400 crores have not yet been cleared. This has affected the industry majorly as due to fund blockage the manufacturers are not able to pay suppliers on time. It has already been informed to the Government that the garment industry has not yet witnessed any positive impact of GSTespecially, small and medium exporters due to a considerable increase of working capital as well as higher transaction cost. Some other issues like cut in duty drawback, future export subsidies and RoSL etc. have added more problems. It seems that Government is not serious in resolving tax refund under GST. There is a need to discuss with the Government with all the issues and to make it clear that how these issues are badly impacting the industry.