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Preparedness  Required By TEXTILE Industry For Implementing of GST By 01-July 2017

As you all know that our country is going to witness the biggest taxation reform by way of GST which is expected to rollout by 01-July-2017. Also GST council today on 03-June-2017 has indicated the rate of GST on textile industry. The details of indicated rates is as mentioned below:

 

Sr. No.                  Particulars                                                              Indicated Rate of GST

 

    1.                        Cotton                                                                                 5%

    2.                        Cotton Yarn                                                                         5%

    3.                        All type of fabrics                                                                 5%

    4.                        Synthetics Yarn                                                                  18%

    5.                        Readymade Garments                                                        12%

    6.                        Readymade Garments upto Rs1000                                    5% (No Credit)

    7.                        Silk and Jute Fibre                                                                NIL

 

Now it's high time for textile industry to get ready for GST which is expected to be rollout on 01-July-2017. Following steps need to be taken with immediate effect so that the implementation is to done latest by 30-June-2017:

 

1. Take the stock of all raw material, work in progress and Finished goods lying within factory

2. Details of stock lying with Job worker (Bleach, Dyeing, Felt, Finishing, Printing etc)

3. Take the stock of packing material

4. Take the stock of chemicals.

5. Identify the invoices of supplier for such stock.

6. The invoice should contain the name of entity and duty paid (VAT or Central Excise) on such goods.

7. The said duty as mentioned on the invoices can be taken as credit within 30 days (i.e. 30th July-2017) by filling the stock statement.

8. Finalise the software as software plays a crucial role in your successful implementation of GST.

9. Send the letter/Mails to your supplier/vendor asking the details of

a. GST no or provisional registration number,

b. HSN code or Service accounting code,

c. PAN No.

d. Registered address,

e. Contact no,

f. Email id etc.

 

10. Update the Master's of all your vendors/supplier by filling the above mentioned details.

11. All supply made on or after 01-July-2017 will be covered under GST, so plan accordingly.

12. The supplier who is not going to registered under GST is termed as UNREGISTERED Vendor and GST on such value is to be paid by entity himself so plan your purchase accordingly.

13. Each entity has to file minimum 3 monthly return and time of such return and details of same is mentioned below:

a. Sales details need to submitted by 10th of next month

b. Purchase details to be confirmed between 11th to 15th of next month

(This return will be filed by your supplier by putting your GST no)

c. BY 20th of next month you have to file combine return and make the payment.

d. Late fees if Rs.100 per day.

e. Annual return is to be filed by 30th September after completion of financial year.

14. It is also advisable to recruit the supporting staff considering the expected work and volume of your entity.

15. There are mainly three types of GST namely CGST, SGST and IGST which is

payable as below:

a. If supply is made within state then charge CGST and SGST

b. If supply is made interstate then charge and pay IGST.

c. If supply is made to union territory the charge and collect UTGST

d. If supply is made to SEZ or EXPORT then IGST

16. Finalise the invoice format.

17. Finalise the purchase order format, if required.

18. If you are selling the goods through your agent then agent need to take registration and invoicing need to be done on Agent based on his location.

 

19. The credit under GST is available only if it is disclosed in GST return so send your

GST no to all your supplier specially:

Telephone operator                       Raw material supplier

Mobile service provider                Packing material supplier

Airline ticket agent                          Chemical supplier

Transporter                                        Courier Service

 

 

20. There are separate treatment of sales return and purchase return in GST so plan accordingly

 

21. GST is also payable on interest, late fees etc received from customer (Specially Adatiya or Grey supplier)

 

ABHISHEK CHOPRA & ASSOCIATES

(CHARTERED ACCOUNTANTS)

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