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Gst on textile

10 July 2017

Sir
I am a manufacturer of textile fabric. Suppose I purchase yarn of 100+18% gst (total=118) and sale it on 150+5% gst(total 157.5), then will I have to pay 7.5 rupees to government or not?

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9 Replies

upasana gupta (Finance Professional) (3931 Points)
Replied 10 July 2017

No as you will avail input credit of rs 18.As you will avail the input credit then the net amount shall be the output tax which is payable to government which is NIL as per the above example.

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 10 July 2017

Originally posted by : upasana gupta
	No as you will avail input credit of rs 18.As you will avail the input credit then the net amount shall be the output tax which is payable to government which is NIL as per the above example.

Mam.,

Any refund available for Textile Industry...?! or

Any Changes made refund rule to Textile Industry...?!

Rajat Khanna (86 Points)
Replied 10 July 2017

No cash refund is available in GST. you can only avail ITC. and for ur eg. u better calculate 18 - 7.5 = 10.5 as your costing.

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 10 July 2017

Originally posted by : Rajat Khanna
	No cash refund is available in GST. you can only avail ITC. and for ur eg. u better calculate 18 - 7.5 = 10.5 as your costing.

Why Sir...?

Why refund not available...?

Rajat Khanna (86 Points)
Replied 10 July 2017

as per gst law govt will not pay back ur excess itc in terms of cash or kind. the only way available is in the form of ITC.

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 10 July 2017

Originally posted by : Rajat Khanna
	as per gst law govt will not pay back ur excess itc in terms of cash or kind. the only way available is in the form of ITC.