Registration process

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This query is : Resolved

pratik agarwal (Querist)

06 June 2017 Sir I am a retailer in sarees and dress material .how will we register under gst as we don't have VAT NO. As it was a tax free item and now it is been put under 5 % slab and as textile goods are exise paid so will we get input of 40%

Guest

Guest (Expert)

06 June 2017 You have to obatin new registration .For that see this video. https://youtu.be/DV_UzOkvUIs

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

20 July 2025 Hey! Here’s a clear rundown for your situation as a retailer of sarees and dress materials regarding GST registration and input credit:

1. GST Registration Process for Retailers

Since GST is now applicable on textile goods including sarees and dress materials, you must register under GST if your aggregate turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs for special category states).
You do not need a VAT number to register for GST. VAT registration was under the earlier tax regime; GST is a new tax system.
How to Register:
Visit the GST portal: https://www.gst.gov.in/
Click on ‘Register Now’ and fill in details like:
PAN of the business
Mobile number and Email ID for OTP verification
Business details, bank account, and address
Upload documents like PAN card, Aadhaar card, proof of business address, bank details, and photographs.
Once submitted, GST officer will verify and approve your registration.
2. Regarding Input Tax Credit (ITC) on Textile Goods

Sarees and dress materials are now under the 5% GST slab.
Regarding input credit on excise paid (from earlier regime), GST allows ITC only on taxes paid under GST system.
Input credit on excise duty paid before GST is generally not allowed.
For your purchases now under GST, you can claim input credit of GST paid on raw materials or purchases used for your business.
The 40% ITC you mentioned may refer to earlier rules under VAT or CENVAT; under GST, ITC is allowed on actual tax paid on inputs and input services related to your business.
Summary:

Point Details
GST Registration Needed Yes, if turnover > ₹20 lakhs
VAT No. Requirement No, VAT is replaced by GST
Input Credit on Excise Not allowed on old excise duty paid
Input Credit on GST Allowed on GST paid on purchases
GST Slab on Sarees 5% GST

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