Gst On Chikan(Fabric) Manufacturers,Traders.


Abhishek Gupta
watch_later 3 years, 8 months ago

Q:) Need to know the whole taxablity under GST regime for chikan manufacturers and traders which was exempt in existing vat laws?


Q:)Stock treatment which was held with the manufacturers and traders which was earlier exempt now how to treat the existing stock ? 

Q:)Taxabilty where the fabric is sent to the kaarigar (job worker) both for principal and job worker?

Q:)Treatment of normal loss and theft while providing the same to job workers?

Q:)Rates of tax in process:

1-Fabric and threads purchased for chikan embroidery;

2-provided to job worker all the material

3-After finishing provided the goods for washing and dry cleaning to other job workers and returned to manufacturer.
4-after getting the final product manufacturer put the MRP (or without MRP) on the product and sells to traders in bulk and to direct customers.

need to know how we have to involve GST in said process.

 

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    Exact tax rate and treatment can be given if you can provide HSN code of your product. - Pulkit Sharma
1 Answer

Pulkit Sharma watch_later 3 years, 8 months ago
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Need to know the whole taxablity under GST regime for chikan manufacturers and traders which was exempt in existing vat laws?

Embroidery or zari articles, that is to say,-imi, zari, kasab, saima,dabka, chumki, gota, sitara, naqsi, kora, glass beads, badla, glzal, [5809, 5810]

All above items are to be taxed at 5% under GST.

Further below items are taxed at 12%.

1. 5801 Woven pile fabrics and chenille fabrics, other than fabrics of heading 5802 or 5806.

2. 5802 Terry towelling and similar woven terry fabrics, other than narrow fabrics of heading  5806; tufted textile fabrics, other than products of heading 5703.

3. 5803 Gauze, other than narrow fabrics of heading 5806.

4. 5804 Tulles and other net fabrics, not including woven, knitted or crocheted fabrics; lace in the piece, in strips or in motifs, other than fabrics of headings 6002 to 6006.

5. 5805 Handwoven tapestries of the type Gobelins, Flanders, Aubusson, Beauvais and the like, and needle-worked tapestries (for example, petit point, cross stitch), whether or not made up.

6. 5806 Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs).

7. 5807 Labels, badges and similar articles of textile materials, in the piece, in strips or
cut to shape or size, not embroidered.

Stock treatment which was held with the manufacturers and traders which was earlier exempt now how to treat the existing stock ?

When you purchased or manufactured these items, they were exempted and no tax was paid. So you do not have input to avail.

When you sale/supply this stock you need to charge 5% GST.

Check other conditions too for registration. If sold within state, then upto 20 lakhs it is exempted (10 lakhs for special category states).

Treatment of normal loss and theft while providing the same to job workers?

If you availed input credit on items lost, you need to reverse the input credit.

For job worker related issues read job worker section under GST.

For any specific doubt please ask a separate question.

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