It is a cleared by the government to the trading communities that the piece of cloth invites only 5 percent GST but if the retailer sells that cloth, after binding and stitching it into a suit, may also attract a tax rate of 12 percent. This ensures that the different variety of clothes and their making will also reflect different slab rates on the clothes sold.
Similar information was given to traders by the Excise and Taxation Department officials at the seminar organized by All India Federation of Cloth Retailers’ Association, Hotel GK International in Chandigarh. Readymade and textile merchants and wholesale traders which were told that whatever the cloth is, the GST will be up to five percent
If you sell a suit of fabric, then a suit worth less than Rs. 1000 will be taxed at 5% and a suit worth more than one thousand rupees will be taxed 12%. At the same time, officials said that if 5%, 12% and 28% of the products were merged together, then the GST would be counted for the highest GST product of these three. The good thing is that input credit is available on every item.
There may now be a check in the exhibition set in the city. When the traders suggested this to the GST officials, they said that the exhibition to be held in hotels and buildings will be discussed to ensure that the exact payment of tax is made. GST officials said that if you refuse to take the transport of goods up to twenty lakh rupees, report immediately. Also the, GST officials said that use eight digit HSN codes for 15 lakh to 5o lakhs transactions.