Business Case Studies, Finance, Accounting and Control Case Study, Berkshire Hathaway Inc,Warren Buffet's Investment Philosophy

Code : FAC0066

Year : 2023

Industry : -

Region : Asia

Teaching Note:Available

Structured Assignment : Not Available

Abstract: The implementation of GST in India from July 1, 2017, brought about tremendous changes in the indirect tax structure in the country. GST impacted each and every sector and industry in its own way. The textiles industry was no exception. With GST being imposed on textiles, various pre-GST era problems of the textiles industry were addressed. However, it also created new issues for the government, including the important issue of an inverted tax structure. Inverted tax structure refers to the imposition of higher tax rates on inputs and lower tax rates on outputs. This forced the government to refund the excess to the industry. Hence, the GST council, headed by the Finance Minister, Ms. Nirmala Sitharaman, announced a new common tax rate to be implemented across the textiles industry, i.e., 12 per cent, effective from January 1, 2022. However, this decision was strongly opposed by the textiles industry, the consumers, as well as a few state governments. Due to this, the Council had to put the implementation of the new rates on hold till further notification. In this context, a new policy strategy needs to be followed by the government to resolve the issues of inverted tax structure.

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