Assess the Impact
The dip in sales could be temporary, and fears about the country being flooded with textile imports could also be misplaced. An impact analysis is in order for the GST Council to make an assessment. Production costs will come down in the long run as GST allows manufacturers to claim credit for all the taxes paid on inputs across the value chain. Bringing sectors of the economy that are excluded from GST under the new levy will also give the leeway to reduce rates.