Goods & Services Tax(GST), launched in July 2017, is the new tax regime. Introducing a single tax system government introduced GST to replace many indirect taxes in India, such as the excise duty, VAT, services tax, etc. In this article, we will discuss GST on fashion designing services, and it’s SAC codes.
Before diving deep straight into the topic, let us learn about GST.
Understand GST(Goods and Services Tax)
The GST (Goods and Services Tax) is a tax on either the supply of goods or services. In India, the Goods and Services Tax (GST) is a multi-stage, destination-based tax applied on any value addition. GST (Goods and Services Tax) is a single domestic indirect tax law that governs the entire country.
GST has many benefits. For instance, All operations, such as registering, filing, reimbursement request, and responding to notice, are always completed online via the GST portal. As a result, the process is quick and straightforward.
To get advantages of GST, companies need to get GST Registration.
Importance of GST Registration
GST Registration is essential in many terms as it has mentioned below advantages.
- The GST removes the tax cascade effect.
- It provides the composition scheme for small businesses with a higher registration threshold.
- The online process is easy and fast.
- The number of compliances is more limited.
- Logistics productivity has improved.
- GST governs the unorganized market.
GST on Fashion Designing Services
In terms of GDP, jobs, and foreign trade, India’s clothes sector is one of the largest and most successful contributors to the country’s economic growth.
The textile industry, one of the country’s oldest manufacturing industries and the second largest after agriculture, recruits both skilled and unskilled workers.
Fashion Designing Services is a significant sector in the textile industry. It refers to any practise involving the conceptualization, outlining, creation of designs, and pattern preparation for costumes, apparels, dresses, clothing items, jewels, or other items.
A fashion Designer also means someone who provides services in the field of fashion design. Therefore, GST applies to fashion designing services too. As a result, GST on Fashion Designing Services is 18%.
SAC Code Applicable for Fashion Designing Services
SAC(Services Accounting Code) helps in identifying the service. Fashion designing comes under another professional, technical and business services.
Under the Goods and Service Tax classification, the Services Accounting Codes (SAC Codes) 998391 is used for specialized design services. For instance, interior designing, fashion designing, industrial designing, and other speciality design services.
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