PURCHASES AND EXPENSES TREATMENT UNDER GST

Ledger Head	Under RCM i.e. purchased from unregistered dealer; Exempt upto Rs.5000/- per	Not under RCM i.e. purchased		
	day in aggregate		from registered dealer		

Purchase Accounts	RATE %	HSN/SAC CODE			
					
Colour & Chemical 5.5% Vat Tax	-	-	Yes		
					
Cartage (Pur. Col. & Chem.)	-				
					
Colour & Chemical 5.5%Vat	-	-	Yes		
					
COLOUR & CHEMICALS "C" FORM	-	-	Yes		
					
COLOUR & CHEMICALS ST PAID	-	-	Yes		
					
PURCHASE FINISHED GOODS	-	-	Yes		
					
PURCHASE GREY CLOTH	-	-	Yes		
					
Transpotation(Pet Coke Entry Tax)	If less than Rs.750/-(1500/-), it is exempt. Otherwise-5%	9965			
					
TRANSPOTATION (WOOD & COAL)	If less than Rs.750/-(1500/-), it is exempt. Otherwise-5%	9965			
					
Wood & Coal (Lignite 2%)	-	-	Yes		
					
Wood & Coal (Pet Coke 2%)	-	-	Yes		
					
WOOD & COOL (LIGNITE)	-	-	Yes		
					
Direct Expenses					
					
Process Out Side Claim A/c					
					
BONUS EXP.	non-GST. Nothing to be done				
					
CESS	non-GST. Nothing to be done		we understand that cess is to be		
			paid to trust and it is collected by		
			muncipalty on behalf of trust and		
			Trust is registered under sec.		
			12AA.		
					
DIESEL EXP.	non-GST. Nothing to be done		-		
					
ELECTRICITY EXP.	non-GST. Nothing to be done		-		
					
ELECTRIC REP.& MAINT.	Labour charges, 18%	9987	-		
					
	Supply of Material- applicable rate	relevant HSN code of	-		
		material			
E.S.I.CONTRIBUTION	non-GST. Nothing to be done		-		
					
FACTORY EXP.	Labour charges, 18%	relevant HSN code of	-		
		material			
	Supply of Material- applicable rate				
					
FACTORY RENT A/C	18%	9972	-		

				
						
FREIGHT	If less than Rs.750/-, it is exempt. Otherwise-5%. We have to	9965	-			
	make bifurcation of freight, dalali, cess. Because freight,					
	loading & unloading and dalali is have different GST rate and					
	cess and loading & unloading is exempt under GST.					
						
LEAVE WAGES & SALARY	non-GST. Nothing to be done		-			
						
MACHINERY AGINST C FROM	-	-	Yes			
						
	Labour charges, 18%	9987	-			
MACHINERY REP.& MAINT.						
	Supply of Material- applicable rate	relevant HSN code of				
		material				
METRIEAL HANDLING EXP.(CARTAGE)	-		-			
						
Packing Meterial A/c	-	-	Yes			
						
P.F.CONTRIBUTION	non-GST. Nothing to be done		NIL			
						
PROCESS OUT SIDE			Yes			
						
WAGES & SALARY	non-GST. Nothing to be done		NIL			
						
WATER EXP.	non-GST. Nothing to be done;		NIL			
						
Indirect Expenses						
						
ADAN REPAYRING EXP.	18%	9954	-			
						
ADVERTISEMENT EXP.	-	-	Yes			
						
BANK CHARGES	-	-	Yes			
						
BOILER REPAIR & MAINTENANCE	Labour charges, 18%	9985, if contract	-			
		labour; otherwise				
		9987				
						
	Supply of Material- applicable rate	relevant HSN code of				
		material				
BUILDING MAINTENANCE	Labour charges, 18%	9954	-			
						
	Supply of Material- applicable rate	relevant HSN code of	-			
		material				
CHEKING EXPENCES	If on roll labour, no GST; Otherwise-18%	9985, if contract	We understand that "checking" is			
		labour; otherwise	just inspection of fabrics, and there			
		9987	is no treatment or process on			
			goods. It’s a pure labour work			
						
COMPUTER REP.& CHARGE	Labour charges, 18%	9987	-			
						
	Supply of Material- applicable rate					
						
DEPRECIATION	non-GST. Nothing to be done	-	-			
						
DONATION	non-GST. Nothing to be done	-	-			
						
ENTERTAIMENT EXP.	Supply of Material- applicable rate	relevant HSN code of				
		material				
Fire Loss Exp.	non-GST. Nothing to be done. It is loss	-	-			

				
						
FOLDING & PACKING EXPENSES	If on roll labour, no GST; Otherwise-5%	9985, if contract	We understand it as Textile fabric			
		labour; otherwise	job and it would be specifically			
		9987	mentioned on voucher "Textile			
			fabric job".			
						
INSURANCE EXP.			Yes			
						
INTEREST PAID	non-GST. Nothing to be done		-			
						
AGENT COMMISSION A/C	18%	9961	18%			
						
LABORATORY EXP.	-	-	Yes			
						
LEGAL EXP.	18%	9982	18%			
						
LIFE INSURANCE EXP.OF EMPLOYES	non-GST. Nothing to be done		NIL			
						
MESS EXPENSES						
						
OFFICE EXP.	Labour charges, 18%	9987				
						
	Supply of Material- applicable rate	relevant HSN code of				
		material				
POSTAGE & COURER	-	9968				
						
PRINTING & STATIONERY	-	-	Yes			
						
Ricco Service Charge	-	As RIICO would itself be registered, being a state industrial			
		corporation, GST would be collected by RIICO. There is no			
		RCM				
						
R.O.C. FILING EXP.	18%, if more than Rs.5000/-	9982	18%			
						
STAFF WELFARE	Depending upon the items. Further Gift upto Rs. 50000 per employee in a financial year	NIL			
	is not taxable					
						
TELEPHONE EXP.	-	-	Yes			
						
TRAVELING EXP.	depending upon vehicle. No RCM on Train/Flight;	9964 or 9966	-			
	There are 2 rates on moto vehicles depending upon					
	passenger capacity-5%/18%					
						
	Labour charges, 18%	9987	-			
TRUCK REP.& MAINT.						
	Supply of Material- applicable rate	relevant HSN code of				
		material				
	Labour charges, 18%	9987	-			
VEHICLE CAR EXPENSES						
	Supply of Material- applicable rate	relevant HSN code of				
		material				
	Labour charges, 18%	9987	18%			
VEHICLE RUNNING & MAINT.						
	Supply of Material- applicable rate	relevant HSN code of				
		material				
WAGES AND SALARY (ADV.)	non-GST. Nothing to be done	-	-			
						
WATER POLUTION EXP.	Fees for consent to operate/establish-18%, if more than	9994				
	Rs.5000/-