The Central Board of Excise and Customs (CBEC) and Commercial Taxes Departments of States/Union Territories have jointly issued clarifications on various aspects related to the Goods and Services Tax (GST). This comes in the wake of protests against various clauses and rules under the GST regime. The clarifications will help the industry in filing GST.
Since raw jute and raw silk have been kept at nil rate slab in the GST, suppliers dealing only in raw jute and raw silk are not required to register, it said. However, since cotton is placed under 5 per cent rate and farmers are not liable to registration, the buyers of raw cotton from the farmers are required to pay tax on Reverse Charge basis as per Section 9 (4) of the CGST Act.
For readymade garments, all goods of sale value not exceeding Rs 1,000 per piece would be taxed at 5 per cent and the goods of sale value exceeding Rs 1,000 per piece would be taxed at 12 per cent. Therefore, it is the sale value i.e. the transaction value on which the tax has to be paid and not the MRP.
CBEC further clarifies that relaxation in filing of returns for the months of July and August 2017 has already been provided by the GST Council wherein for the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before August 20 (for July) and September 20 (for August).
However, the invoice-wise details in regular GSTR – 1 would have to be filed for the month of July between September 1 and 5, and for August between September 16 and 20. Form GSTR – 2 would be auto-populated from GSTR – 1. (RKS)
Source: Fibre2Fashion News Desk – India