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GST on textiles

Shubham (chartered accountant) (50 Points)

19 June 2017

what is the process on GST implementation... before there were no tax on retail counter on length clothes. now from 1st July. will stock will taxed @ 5% to the buyers over existing rate?
please help
will have to take GST no.?

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7 Replies

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 19 June 2017

YES if your aggregate turnover exceed 20 lac / 10 lac incase of north eastern states. you could also go for composite scheme where you would require to pay tax at 1% and file return quartely if your aggregate turnover doesnt exceeds 75 lacs

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 19 June 2017

no you would be charging only gst at 5% , no other existing rate would prevail

Shubham (chartered accountant) (50 Points)
Replied 19 June 2017

if I charge 5% GST on my existing closing stock on which I have no input tax credit. will I give 5% tax to the government? this would raise the price a lot. how this is to be treated?

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 19 June 2017

do back calculation , lower your profit , apply gst

NITIN KOTAK (SERVICE) (1465 Points)
Replied 19 June 2017

composition scheem allowed for only intra state you cannot sales interstate as well as ecommerce site.

NITIN KOTAK (SERVICE) (1465 Points)
Replied 19 June 2017

you can eliable 40% tax relife on opening stock due to provision of tax reliefe if tax rate less than 18% if item rate 18% or more than 18% you are eligable for 60%

CA Ashwani Agarwal (Practice) (3049 Points)
Replied 22 June 2017

in the conditions for composition scheme it is written that... if a person opts for composition scheme he has to first pay reverse tax on goods bought by him from unregistered dealers...

So because all the cloth merchant have stock purchased from unregistered dealers... do they all have to pay reverse tax on their stock if they want to come into composition scheme