Gst effect on unsold goods for textile importer

Import / Export 363 views 2 replies

I wonder what will happen unsold stock ( textile ) once GST will be implemented. My query 

1. All unstold stock will tract GST ? 

2. Can unsold stock attract Tax Credit? If yes terms and conditions.

3. Grace period to dispose the unsold stock.

At present there no VAT on Textile 

Replies (2)

1) The unsold stock would not attract GST... Please refer to the transitional provisions... Section 142... Extract is as below:

"(11) (a) notwithstanding anything contained in section 12, no tax shall be payable on goods under this Act to the extent the tax was leviable on the said goods under the Value Added Tax Act of the State;
(b) notwithstanding anything contained in section 13, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of the Finance Act, 1994;"

2) Unsold stock cannot attract tax credit as no tax has been paid on such stock.

3) There is no grace period required because stock can be sold off any time after applying GST.

 

Hello Sir, Can you please explain it in bit simple language. For Eg, if trader has textile stock of 25LKH , After July 1, He will have to charge 5% GST when selling it.

Also, When applying for GST number, will we have to declare it during new registation once the new registration process is opened.


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