<p style="text-align:justify"><span style="font-size:14px"><strong>Question:</strong>&nbsp;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:- </span></p>

<ul>
	<li style="text-align: justify;"><span style="font-size:14px">(a) Whatever is sold, 15-30% is returned. What would be treatment of goods returned and how would I adjust my tax liability if the entire GST has already been paid. </span></li>
	<li style="text-align: justify;"><span style="font-size:14px">(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. </span></li>
	<li style="text-align: justify;"><span style="font-size:14px">(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? </span></li>
	<li style="text-align: justify;"><span style="font-size:14px">(d) How will I make my invoices if a buyer under the composition scheme come to buy our sarees. &bull;&nbsp;&nbsp; &nbsp;</span></li>
	<li style="text-align: justify;"><span style="font-size:14px">(e) We are confused about GST implementation as there was no tax on us before. Will we get relaxation for the return filing?</span></li>
</ul>

<p>&nbsp;</p>

<p><span style="font-size:14px"><span style="color:#474747"><strong>Answer:&nbsp;</strong></span></span></p>

<ul>
	<li style="text-align: justify;"><span style="font-size:14px"><span style="color:#474747">(a) You can issue a credit note in respect of the goods returned and adjust your tax liability if the person returning the goods has reversed the credit availed by him at the time of original supply. Such credit note cannot be issued after September of the following year or filing of annual return whichever is earlier.</span></span></li>
	<li style="text-align:justify">
	<p><span style="font-size:14px"><span style="color:#474747">(b) Full credit of the tax paid on the stock would be available if the documents evidencing tax payment are available. However, if only documents relating to procurement are available with no documents evidencing tax payment, deemed credit would be admissible in respect of textiles only if the goods were taxable under the Central Excise Act. Such credit would be available after the tax has been paid on supply of these goods. This facility is available for 6 months period only or till the date of sale of such stock whichever is earlier and is limited to 40% of the central tax paid by you.</span></span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px"><span style="color:#474747">(c) As per the second proviso to Section 16(2)(d) of the CGST Act, 2017 if a recipient of the supply does not pay to its supplier the value of the supply along with the tax within 180 days from the date of issue of invoice by the supplier, the amount of ITC availed proportionate to the unpaid amount would be added to the output tax liability of the recipient of the supply along with the interest thereon. The credit so reversed can be reclaimed when the value is paid to the supplier along with the tax thereon. Thus the government is not assuring payment within 180 days.</span></span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px"><span style="color:#474747">(d) A normal invoice has to be issued irrespective of whether the buyer is under composition scheme or not. The difference would be only when you receive supplies from the person registered under the composition scheme.</span></span></p>
	</li>
	<li style="text-align:justify">
	<p><span style="font-size:14px"><span style="color:#474747">(e) Relaxation in filing of returns for the month of July and August, 2017 has already been provided as per which for the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month. However, the invoice-wise details in regular GSTR &ndash; 1 would have to be filed for the month of July and August, 2017 as per the timelines given below &ndash;</span></span></p>
	</li>
</ul>

<p style="text-align:justify">&nbsp;</p>

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						<div><span style="font-size:28px"><strong><span style="color:#34495e">Month</span></strong></span></div>
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						<div><span style="font-size:28px"><strong><span style="color:#34495e">GSTR - 3B</span></strong></span></div>
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						<div><span style="font-size:28px"><strong><span style="color:#34495e">GSTR - 1</span></strong></span></div>
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						<div><span style="font-size:28px"><strong><span style="color:#34495e">GSTR-2 (auto populated from GSTR-1)</span></strong></span></div>
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						<div style="text-align:center"><span style="font-size:28px"><strong><span style="color:#34495e">July, 2017</span></strong></span></div>
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						<div style="text-align:center"><span style="font-size:28px"><strong><span style="color:#34495e">By 20th August</span></strong></span></div>
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						<div style="text-align:center"><span style="font-size:28px"><strong><span style="color:#34495e">By 5th September</span></strong></span></div>
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						<div style="text-align:center"><span style="font-size:28px"><strong><span style="color:#34495e">6th - 10th September</span></strong></span></div>
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						<div style="text-align:center"><span style="font-size:28px"><strong><span style="color:#34495e">August, 2017</span></strong></span></div>
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						<div style="text-align:center"><span style="font-size:28px"><strong><span style="color:#34495e">By 20th September</span></strong></span></div>
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						<div style="text-align:center"><span style="font-size:28px"><strong><span style="color:#34495e">By 20th September</span></strong></span></div>
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						<td style="border-bottom:1px solid #cccccc; border-left:none; border-right:1px solid #cccccc; border-top:none; vertical-align:top">
						<div style="text-align:center"><span style="font-size:28px"><strong><span style="color:#34495e">21st - 25th September</span></strong></span></div>
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