Hello Members,
I am on the cusp of starting an online venture of selling garments(t-shirts, shorts) online.
As GST is mandatory for any kind of e-commerce business, I have made provisions to apply for the same.
Does the minimum revenue limit of Rs. 20 lakhs apply to online business as well?
Should I charge my customers 5% GST on garments priced below Rs. 1000 as mandated by law and pass on the GST collections to the Govt.
OR
Not charge any GST to my customers and wait for my revenues to hit Rs. 20 lakhs
I will also sell printed t-shirts for which my printer charges me a flat 18% GST. How do I account for this? Can I claim refund on the GST charged by my printer or do I have to absorb it as input cost too and pass it on to my customer ?
I consulted a few experts and got varying answers. Some said GST is not required, some others said I will have to charge 5% GST to my customers and remit 1% to the Govt while pocketing 4%. I found this quite confusing.. then there is added confusion over GST on printing charges with some suggesting to pay by cash and save on 18%. Wouldn't this be a risky proposition given that I sell only printed t-shirts but I don't pay a paisa towards GST to my printer? At some point.. this will land me and the printer in trouble.
Looking forward to gaining some knowledge and clarity regarding these topics.
CAclubindia
