State the applicability of GST rate under given situation if:
1. Amrit Raj is a manufacturing unit for cotton trousers where customers give
fabric to convert into trouser.
2. Dress materials are sold by length. They include up to 3 pieces. These can
be plain or embroidered (can be further worked upon).
3. The GST norms have changed overtime.
Answers
Answer:
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The goods and service tax (GST) is classified as a value added tax and is applicable to all the commodities available for consumption.
1. Amrit Raj 's services come under the job category by virtue of the interpretation of work done under Section 2(68) of the CGST Act , 2017. The rate of employment for pants, which is a wearing clothing, is 18%.
2. Under the heading 6307 the dress materials are listed. The tax rate is close to that of the dress. This means that for dress material that does not exceed 1000 as a sale value a tax of 5 percent will be levied, whereas a tax of 12 percent will be levied if the sale value is more than Rs.1000.
3. If the GST norms change over time, then the new norms will be applicable based on the type of service.