How to deal with GST for Furniture Manufacturing Unit. Get insight from CA in Udaipur.

Explore essential GST FAQs for furniture manufacturing with insights from CA in Udaipur. Get informed and stay compliant for your business success.

Q1: Do I need to register under GST if my turnover is less than ₹40 lakh?
A1: GST registration is mandatory if your annual turnover exceeds ₹40 lakh. However, if your turnover is below the threshold limit, you may still opt for voluntary registration, which enables you to claim input tax credit (ITC) on your purchases.

Q2: Can I claim Input Tax Credit (ITC) for raw materials used in manufacturing furniture?
A2: Yes, you can claim ITC on raw materials, including wood, metal, and upholstery materials used in the manufacture of furniture, provided you have valid GST invoices for the purchases.

Q3: What is the process for filing GST returns for a furniture manufacturer?
A3: You need to file GSTR-1 for sales (outward supply) and GSTR-3B for tax liability and ITC claims. Both are due by the 10th and 20th of the subsequent month, respectively.

Q4: What should I do if I receive defective goods from my supplier?
A4: You can claim a refund or adjust the purchase value by issuing a debit note. Ensure that the defective goods are returned, and the supplier acknowledges the adjustment.

Q5: What documents do I need to keep for GST compliance?
A5: Keep all sales and purchase invoices, debit/credit notes, shipping bills, GST returns (GSTR-1, GSTR-3B, and GSTR-9), and bank statements for a minimum of 6 years.

Q6: Can I export my furniture and claim a refund of ITC?
A6: Yes, export sales are zero-rated under GST, and you can claim a refund of the accumulated ITC on raw materials and services used for manufacturing exported furniture.

Q7: What is the penalty for non-compliance with GST regulations?
A7: Penalties can include fines, interest on delayed payments, and even cancellation of GST registration in severe cases. Therefore, timely filing of returns and proper documentation is crucial to avoid penalties.

Unravel GST FAQs for furniture manufacturing. Get clarity on tax regulations, input credits, and filing processes specific to your manufacturing unit from the CA in Udaipur.