Download to read offline
More Related Content
More from Saranya Narayana Moorthy
Gst
- 1.
- 2. What is GST Goodsand Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. Components of GST • CGST: Collected by the Central Government on an intra- state sale (E.g.: transaction happening within Maharashtra) • SGST: Collected by the State Government on an intra- state sale (E.g.: transaction happening within Maharashtra) • IGST: Collected by the Central Government for inter-state sale (E.g.: Maharashtra to Tamil Nadu) 2
- 3. The Change GSThas brought: 3 Transaction New Regime Old Regime Total Sale within the State CGST + SGST VAT + Central Excise/Se rvice tax Revenue will be shared equally between the Centre and the State Sale to another State IGST Central Sales Tax + Excise/S ervice Tax There will only be one type of tax (central) in case of inter-state sales. The Center will then share the IGST revenue based on the destination of goods.
- 4. Comparison Not only pricevariations, the implementation of GST has also caused few changes in the way these costs are formulated. Calculation Before GST Calculation After GST 4 Action Cost 10% Tax Total Manufacturer 1,000 100 1,100 Warehouse adds label and repacks @ 300 1,400 140 1,540 Retailer advertises @ 500 2,040 204 2,244 Total 1,800 444 2,244 Action Cost 10% Tax Actual Liability Total Manufacturer 1,000 100 100 1,100 Warehouse adds label and repacks @ 300 1,300 130 30 1,430 Retailer advertises @ 500 1,800 180 50 1,980 Total 1,800 180 1,980
- 5. GST vs Apparels Differencesin costing and taxations because of GST 5
- 6. GST Implementation inSector GST is not implemented as a whole to the apparel sector. It depends on what you purchase and how much you purchase that determines your GST. GST has been implemented based on goods based on their luxury level. • Convenience is given for daily use goods. Handloom products have 0% GST. • Basic apparels and basic footwear have a minimal amount of 5% to 18% GST depending o its requirement. • Luxury goods have the highest GST of 25% to 28% thus enabling it for the higher class. 6
- 7. Rates and Codes GSMtax rate and HSN code for various products rates given here. These are the GSM rates for those involving cotton composition. 7 Cotton Composition HSN Code GST Tax Rate Products with more than 85% cotton content & weight is less than 200 gm/sq mtr 5208 5% Products with more than 85% cotton content & weight is greater than 200 gm/sq mtr 5209 5% Products with less than 85% cotton content, mixed with additional fabrics & weight is less than 200 gm/sq mtr 5210 5% Products with less than 85% cotton content, mixed with additional fabrics & weight is greater than 200 gm/sq mtr 5211 5% Other Cotton Products 5212 5%
- 8. Rates and Codes GSTRates & HSN Codes For Synthetic Filament Yarn Products like- Parachute Fabrics, Tent Fabrics, Nylon Furnishing, Umbrella cloth, Polyester Shooting, Polyester Shirting, Other polyester cloth, Nylon Brasso, Nylon jacket, Nylon saree, Terylene saree, Dacron saree, Rayon Crepe, Rayon jackets, Rayon saree, Rayon shirting & Rayon brocade. 8 Yarn Specification HSN Code GST Tax Rate Synthetic Mono filament of 67 Decitex or more and of which No cross sectional dimensions exceed 1 mm; strips & the Like of synthetic textile material of an apparent width not exceeding 5 mm. 5407 5% Artificial Mono filament of 67 Decitex or more and of which No cross sectional dimensions exceed 1 mm; strips & the Like of synthetic textile material of an apparent width not exceeding 5 mm. 5408 5%
- 9. AdvantagesofGST Removes Cascading Effect HigherThreshold for Registration Composition scheme for small business Online simpler procedure under GST Lesser Compliances Defined Treatment for e-commerce Increased efficiency for logistics Regulating the unorganised sectors
- 10. ThankYou Saranya N +91 8754438562 n29saranya@gmail.com 16BFT1006