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Gst rate

SSG (1936 Points)

26 July 2017

What GST rates will be applicable on a business engaged in supplying of cloth and stitching it, as per the requirement of the customer? Please advise.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (173281 Points)
Replied 26 July 2017

Conditions for composite supply-

Any supply of goods or services will be treated as composite supply if it fulfils BOTH the following criteria:

Supply of 2 or more goods or services together, AND
It is a natural bundle, i.e., goods or services are usually provided together in normal course of business. They cannot be separated.
Tax liability will be the tax on the principal supply i.e., GST rate on the goods.

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SSG (1936 Points)
Replied 26 July 2017

Sir, tax rates are of 5% (below Rs. 1000) and 12% (above Rs. 1000) on cloth. Now for Rs. 1000/- what should we consider - total supply (both cloth and stitching) or cloth only?

Further, what is Rs. 1000/- value of cloth. Is it invoice value or per piece or per metre? If we inoice for cloth and stiching separately, then whether GST rate will be charged @ 18% on stitching? Please guide.