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 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).
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.#
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.
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.#
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.
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.#
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.
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.#
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