Home / Knowledge / News / Textiles / No GST registration needed for raw jute, silk suppliers
No GST registration needed for raw jute, silk suppliers
02
Aug '17
The Indian Central Board of Excise and Customs (CBEC) has clarified on its website that raw jute and silk suppliers do not need to register under the new Goods and Services Tax (GST) regime as both raw materials invite nil tax. The clarification was in response to complaints of mills asking raw silk and jute suppliers to mandatorily register themselves.
 
The Board further clarified that mills procuring raw jute and silk from unregistered suppliers are not required to pay tax under the Reverse Charge Mechanism (RCM).
 
A cotton farmer is also not required to register under GST. But buyers of raw cotton from the farmers are required to pay tax on Reverse Charge basis. Jute handbags and shopping bags would be taxed at 18 per cent under the GST, which came into effect on July 1.
 
On shawls, which have not been classified separately in the GST rate schedule, the CBEC said as fabric is the cloth made out of yarn by weaving or knitting in running length and packed in rolls, shawls can be classified as fabric. However, if shawls are stitched to form poncho cape shawl wrap, these may be classified as made-up, which are fabrics further worked upon but not stitched into usable garments. 
 
Therefore, when sold directly by cutting from the roll, shawls should be taxed at the rate of 5 per cent and when sold as single units or ponchos, these may be taxed as made-ups.
 
Clearing the confusion over whether sarees will be treated as garment or fabric, CBEC said sarees are treated as fabric and will attract 5 per cent GST. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Last-minute changes in USMCA keeps lid on e-com

Textiles | On 18th Oct 2018

Last-minute changes in USMCA keeps lid on e-com

Eleventh hour changes to a new trade deal torpedoed US hopes of...

Courtesy: Haggar

Apparel/Garments | On 18th Oct 2018

Haggar uses Repreve fibre made of recycled water bottles

Haggar, a US based apparel brand established in 1926, has recycled...

Revenue from RIL petrochemicals soars 56.2% in Q2FY19

Textiles | On 18th Oct 2018

Revenue from RIL petrochemicals soars 56.2% in Q2FY19

The revenue from the petrochemicals segment of Reliance Industries...

Interviews View All

Headhonchos, Indian textile value chain

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Jim Desai, Blaiva Fabricaa

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Divyesh Mashruwala, Akshar Industries

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Liz Manning,

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harssh Chheda,

Harssh Chheda

Mumbai-based Corporate Collars provides bespoke tailoring services for...

Sham Shah,

Sham Shah

Shamal and Shamal Pvt Ltd is into manufacturing and sales of textile...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Karan Arora, Karan Arora

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search