GST for Textile Shops and Botiques

Goods and Services tax is expected to be rolled out for Textile shops between April 2017 – September 2017. If you are running a Textile store  in India, You might be preparing for the transition from VAT to GST. This post gives a quick heads up on what is to come and what needs to be attended while you move to GST from VAT.

GST for Textile Shops and Botiques

GST for Textile Shops and Botiques


The Goods and Services Tax Council, which will decide the GST rates, has discussed levying 12% GST rate on Textile Sector in India.  Though GST is supposed to bring in a lot of positives to the textile sector and would prove positive to the domestic players. The impact of such levy is need to be seen.

How to move from VAT to GST?

  • If you are registered with VAT and have a valid PAN, you will automatically be migrated to GST
  • A Provisional Certificate of Registration will be issued in GST REG-21
  • You have to submit and apply for Registration by submitting REG-20 Form within 6 months
  • After submission, you will be issued a Final Registration Certificate in REG-06

Which is the best GST Software to use for Textile Shop?

As all the Tax Filings will have to be done electronically, its important to choose your accounting software wisely.

Tally Shopper

Tally Shopper is the legacy store management software for Retail. Unlike its flagship accounting product, The shopper is not popular and is hardly a prefered choice for Textile Stores. Textile store mostly opt for custom made software from Local vendors which predominantly is not on the cloud and has challenges in managing multi-branches and tax filings

Reach Accountant

Reach is one of the better known Online Textile Software with GST Capabilities and ability to give you features specific to Textile stores. It saves investing on servers, lan etc and connects multi branches seamlessly using Cloud technology. To get a quick demo of our product, you can Visit

What are the Changes to the Customer Bill under GST?

Rules for the Bill to be issued under GST

The following details should be displayed in the Tax Invoice

  • The Tax Invoice should have unique serial numbers (number or Alpha numeric)
  • The State Name and State Code Should be mentioned
  • GST Identification Number should be displayed
  • HSN Code for the product/ service needs to be mentioned
  • Taxable value after deducting discount should be displayed
  • The State GST, Central GST and Integrated GST should be shown seperately

What Returns have to be filed under GST by Textile Store?

  • 10th of every month, you will declare your sales in GSTR-1
  • Between 11th – 15th, Your purchase (inward supply) will get auto-populated and you are allowed to make corrections in GSTR-2A
  • On 20th, the auto-populated GSTR-3 will be available for filing and payment
S.No GSTR Return For Due date To be filed by
1 GSTR – 1 Sales (Outward supply) 10th All
2 GSTR-2 Purchase (Inward supply) 15th All
3 GSTR-3 Monthly Return 20th All
4 GSTR-4 Quarterly return 18th of subsequent quarter Compounding Tax payers
5 GSTR-5 Periodic return for NRI Last day of registration NRI
6 GSTR-6 Return for ISD 15th
7 GSTR-7 Return for TDS 10th
8 GSTR-8 Annual Return 31st Dec All

What will happen to the balance of input tax credit pending currently?

You are allowed to carry forward the balance CENVAT credit (provided it is allowed as input under GST). To avail the credit, make sure the last filed VAT returns denotes the available credit.

What do you think will be the challenges for Textile Stores in India after the implementation of GST?  Please post your views in comments below.

I’m a tax expert with over 10 years of professional experience. I’ve gained practical insights on GST and other Taxes during my tenture as a Tax expert and GST Trainer in Reach Accountant.

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