We are a small saree manufacturer at Surat. We buy ready dyed fabrics and get job work, hand work, stitching etc. done to create designer sarees. Wholesalers and retailers from all over India buy these sarees on credit basis for 30 days to 240 days. I as a trader have some queries regarding implementation of GST from 1st July 2017: (a) Whatever is sold, 15-30% is returned. What would be treatment of goods returned and how would I adjust my taxliability if the entire GST has already been paid? (b) What would happen to my opening stock on 1st July 2017. Will I get input credit on it or do I just need to supply it after adding 5% GST on it? (c) Is government assuring of payment within 180 days. There are rumours that the wholesaler/retailer has to pay within 180 days. Is it true? (d) How will I make my invoices if a buyer under the composition scheme come to buy our sarees? (e) We are confused about GST implementation as there was no tax on us before. Will we get relaxation for the return filing?

(a) When you make supplies out of this stock after 1st July,
2017 you will be liable to pay tax as applicable to the
goods sold by you.
(b) GST rate on fabric is flat 5% irrespective of composition.
(c) Upto Rs. 1.5 cr turnover, no HSN code is required to be
mentioned. For those having turnover of Rs. 1.5 to 5 Cr,
first 2 digits of the HSN code are required i.e. the chapter
number. Only those who have turnover above Rs. 5 Cr
are required to mention 4 digits of the HSN code. You
will start getting the HSN code in your supplier’s invoice,
so it would not cause any issues once the supplies under
new regime take place.
(d) ITC would be admissible as per the Transitional
provisions of GST Law.
(e) Rate of tax linked to the sale value applies only to
garments and not for sarees and suilengths
which are fabrics.