By admin       2018-01-25

The silence at Jolly Spinning Mills is punctuated by workers’ chatter as they unload bales of cotton from trucks in the courtyard, adding to a giant fluffy white heap. It’s the peak season in Gujarat, India’s largest cotton producer, and unusual for the factory that runs round the clock to be so quiet at noon. The mill now clatters for barely 12 hours a day. Business is not as usual, said Dilipbhai Umaraniya, chairman, Jolly Group of companies at Chotila, 50 kilometres east of Rajkot in Prime Minister Narendra Modi’s home state. “We don’t have enough working capital after the GST was implemented.” India is the world’s second-largest exporter of cotton—raw and textiles. The 12.3-billion industry, like other export-oriented businesses, is yet to recover from disruption caused by the July rollout of a nationwide sales tax. The biggest tax reform yet in Asia’s third-largest economy subsumed a web of levies to make business easier. But it taxes every level of the supply chain to increase compliance. Companies then claim refunds.

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