|sumesh k menon||Jul-1st , 2017||0 comments|
If you are in running a boutique or Fashion apparel retail store in India, you must note that, GST ( Goods and Service Tax) is implemented and there are some major changes in the tax structure for the same.
NO GST applicable if your sales Turnover is below 20,00,000 ( 20 lacs)
First you need to note that, if your organisation Turnover is below 20lacs ,GST will not be mandatory for you, because small size business is relaxed from the GST bracket which is welcomed by small traders and start-ups.
Otherwise, if your yearly sales turnover is above 20 lacs ( INR 20,00,000) you have to get enrolled for GST and the following taxes may apply.
Garments below INR 1000/ - 5% GST
All garments sold below Rs 1,000 per piece will only have 5 per cent tax rate (GST) from July 1, 2017. Small format fashion boutiques and apparel stores may largly benefited with this low taxation.
Garments above INR 1000/- - 12% GST
If you are selling garments above Rs 1,000 , it will attract 12 per cent tax compared to the 5 per cent that it used to attract earlier.
The comfort factor here is, you can avail input tax if eligible for the same. Means you can claim back the eligible tax portion as per the rules defined by the Government.
Are you running a fashion boutique or Apparel store? Implement more GST friendly Cloud retail software to stay update on real time on all your business activities. Engage your customers and retain them to increase the bottom line. Do mail us at firstname.lastname@example.org for more details
Image courtesy - http://www.dimensionalbusinesssolutions.ca/sites/default/files/retail/clothing.jpg