world, funds for the specificperson)State taxes- VAT, Central Sales

world, India is considered to be the 7 th largest producer of wool. Wool and woollen sectors in Indiacan be classified into nine major product categories-? Worsted Yarn? Woollen Yarn? Wool tops? Shoddy Yarn? Shoddy Fabrics? Blankets? Knitwear? Woollen CarpetsWoollen Industries in India are the only sector which are mainly based on exports as woollen is theonly natural fibre in which our country is deficient (for example-wool from Pashmina goats andAngora Rabbits)PRODUCTION STATE OF WOOL IN INDIA-? Out of the total wool produced only 5% can be used for apparels? 85% of wool that is produced is of Carpet grade? 10% of coarse grade? Higher production of wool in Rajashtan-44%? After that,Kashmir-13%? Karnataka-12%? Gujrat,Uttar-Pradesh,Andhra- Pradesh,Haryana-23%? Wool productivity in world-3.5kg/sheep/year and in India, average is 0.8kg/sheep/yearNUMBER OF WOOLLEN MILLS-718 woollen units in the organised sector and there are several units in the small scale sector also asLudhiana alone has 225-240 units in the small or decentralized occupying hosiery and shawl sector.IMPACT OF GST ON WOOLEN SECTORThe tax on the textile sector will change as per the implementation of the Goods and Services tax .This will replace several existing central taxes and state taxes. The present taxes that are dissolved inGST are as follows:Central taxes- Central excise duty, Service tax, Additional Customs duty, Special Additional Duty,Additional Payments and cess (a charge levied by the Government to raise funds for the specificperson)State taxes- VAT, Central Sales Tax, Purchase tax, Entry tax, Additional payments or cessThese textile industries have the involvement of several other sectors (for inputs and finishedproducts). The inputs are collected from several other sectors which includes goods and services both(such as dyes (colour), chemicals (for the treatment of those fabrics) , petroleum product, transportservices etc. ). Therefore this creates the dependency of organized over unorganized sectors and vice -versa. Because of this inter-state movement as well as the dependency, growth and productivity of thetextile sector will be affected by the implementation of GST.GST RATES FOR DIFFERENT WOOLLEN PRODUCTS-