DEEPAK ROHERA (Senior Accountant) (285 Points)
05 October 2016Is GST is applicable on Textiles Market, What is effect made on textile market after GST because those have only burden of Income Tax now after GST whats happened of Closing Stock of 31.03.2017 they have to pay tax on that.
Sunil Kumar
(Indirect Taxation )
(1246 Points)
Replied 06 October 2016
HI Deepak,
GST council has not yet come up with list of exemption, but if exemption is not provided to this industry then it would badly affect the growth of this Industry.
As far as closing stock is concern. Assessee is laible to pay GST at the time of supply. Further, they can take credit of inputs in terms of section 143 of Draft model law.
Regards
Sunil Kumar
(Indirect Taxation )
(1246 Points)
Replied 06 October 2016
HI Deepak,
GST council has not yet come up with list of exemption, but if exemption is not provided to this industry then it would badly affect the growth of this Industry.
As far as closing stock is concern. Assessee is laible to pay GST at the time of supply. Further, they can take credit of inputs in terms of section 143 of Draft model law.
Regards
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 07 October 2016
The GST on Textile Industry is expected to be imposed in taking forward the intent of reducing exemptions and expanding the taxation base. It is hoped that the merit rate of 10-12 % would be applied with credit.
If the merit rate is applied then the VAT credit of average 5% wouldbe available. The central excise on yarn etc which is around 12.5 % on stocks in hand would also be available subject to evidecne that duty of excise has been paid.
The industry may after confirmation of the rate of duty ( expected to be in public domain by end of oct) start procuign with duty paid documents from amnufacturers directly of dealers registered under central Excise who would pass on the CED or CVD + SAD. In case credits are availed then the impact may not be subsntatial as far as cost is concerned.
Whether the indsutry which has been protected and working iuna an unorganised manner _ duly asisted by exemptions in the past can gear up and comply is the cause of concern.
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