GST impact on Textile industry and preparedness for that

1. Textile Industry-GST Impact Analysis
CA Nisha Kulthia 1 Chartered Accountant
ASRK & ASSOCIATERED ACCOUNTANTS)
Preparedness requiredby 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 as on 03-June2017
has indicated the ra te of GST on textile industry. The details of indicated rates are 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 up to Rs1000 5% (No Credit)
7. Silk and Jute Fibre NIL
Now it’s high time for textile industry to get ready for GSTwhich is expected to be
rollout on 01-July-2017.Following steps needto be taken with immediate effect so that the
implementation is to done latest by 30-June-2017:
1. Take the stock of all raw materials, 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 (VATor Central
Excise) on such goods.
Colleg
e
32, EZRA STREET, KOLKATA 700020
Tel: (O) (0

2. Textile Industry-GST Impact Analysis
CA Nisha Kulthia 1 Chartered Accountant
Email:
ASRK
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. Finalize 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 r e g i s t e r e d 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 returnisto 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.
College

3. Textile Industry-GST Impact Analysis
CA Nisha Kulthia 1 Chartered Accountant
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. Finalize the invoice format.
17. Finalize 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:
20. There are separate treatments of sales return and purchase return in GST so plan
accordingly
21. GST is also payable on interest, late fees etc received from customer.
22. In a major relief for textiles and apparel manufacturers, the GST Council announced a
sharp cut in GST rates on the merchant services at 5 per cent from 18 per cent as on July 11th ,
2017.
Co,
32, EZRA STREET, KOLKATA 700020
Tel: (O) (033) 40068875 Email:
admin@asrkassociates.com, website:
www.asrkasscoaites.co
Telephone operator Raw material supplier
Mobile service provider
Packing material
supplier
Airline ticket agent Chemical supplier
Transporter Courier Service