Revised turnover limit for branded garment manufacturers

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Bobby.Shah

proprietor

23 Points Posted on 04 April 2012

Dear All,

I am a branded garment manufacturer and we sell them under our own brand name. I have couple of queries if any one can advise on that I’ll be really thankful.

As per the last year’s excise policy on branded garment, A manufacturer is exempted from the excise duty if his turnover is below the MRP of 3,33,00,000. Which is calculated as 45% of MRP values = 1,50,00,000. Is the exempted limit. But now this year it is 30% of MRP value, ( so in this case will it work like exemption limit of 1.5 Cr = 30% of 5 Cr MRP VALUE) or it will be continue exemption limit of MRP 3,33,00,000 only.
In case of annual discounts offered on MRP can be taken as deduction on the turnover after making the invoice ?
Incase of goods returned from customer on just normal chalan can be taken as a deduction from the MRP turnover.

Thanking u in advance.

Micky

Replies (2)

Arun Kumar Singh

GST Advocate

13166 Points Posted on 06 April 2012

1. Exemption will be applicable 5CR on MRP value and 1.5CR on assessable value.

2. Discount will not be deducted from sale turnover.

3. Incase goods return from customer you can deduct from sale and cancled the sale invoice of returnable goods.

Bobby.Shah

proprietor

23 Points Posted on 11 April 2012

Dear Arun Kumar ji, Thanks for your kind advise to my query. I’ll be thankful to you if u kindly advise me on below mentioned points too. 1. The revised exemption limit is 5CR but what if incase of my billing amount is greater than 1.5 CR. I mean when we make invoice to our customers we bill them for 67% off MRP value on consignment ( For eg. Goods worth MRP value Rs.4.99 CR we mention MRP value in the invoice but in same invoice we also mention wholesale value which is 33% less then MRP value which is about Rs. 3.34 CR ), so in this case what will be counted as exemption limit ( 1.5 CR wholesale vale or 5 Cr MRP Value ). 2. The goods sold under the above mentioned invoice style to our customers are all in SOR module ( Sale or return, I mean consignment ). And whatever unsold ones are there are returned to us after some time. And the goods are sold in customers stores are under our brand name and MRP only. So in this case which limit can be taken for exemption limit ? MRP VALUE 5 Cr. or the INVOICE VALUE which is 33% lesser than the MRP and greater than 1.5 Cr. Thanking u in advance. Warm regards.