Gandhi Nagar, Delhi
Accounting for Gandhi Nagar's garment wholesalers
Gandhi Nagar is known for wholesale readymade garments. A garment trader's profit often gets lost in three places: cloth out for stitching, season-end stock, and retailers who pay late or send goods back.
Follow one lot of cloth through the books
If you only buy and sell finished garments, start at step 4. This is our general analysis of how the trade works, so adjust it to your own process.
- Cloth comes in. Record it by metres or kilos, with the supplier's bill and your own lot number.
- It goes out for cutting and stitching. Note what left, who took it, and how many pieces it should make.
- Pieces come back. Compare them with what you expected. Shortfall, rejects and leftover cloth all need a record.
- Stock is held in sets. Keep it by style and size, because a rate per piece means little if half the sizes will not sell.
- Goods go to a retailer on credit. Keep a party ledger with the bill date and the agreed credit period.
- Some goods return. Record each return against its bill, with a credit note where one is due.
- The season ends. Unsold stock needs an honest value, which may be far below what it cost.
Cloth with a stitching unit
If you are registered and send inputs to a job worker without paying tax, section 143 of the CGST Act applies. You stay responsible for keeping proper accounts of them. They must come back, or be supplied from the job worker's place, within one year.
If they do not, they are treated as supplied by you on the day they were sent. This period can be extended for sufficient cause. See accounting for manufacturers for how a job work record works.
Rates on garments
GST on garments has depended on the sale value per piece, and those limits have changed over time. A single invoice can therefore carry different rates. Check the current notification with Deepak Mittal, and ask how your software decides the rate for each line.
Also ask whether discounts given after the sale, such as season-end reductions, can change the tax on the original bill.
Reports worth asking for each month
- Retailers by how long their balance has been unpaid
- Cloth and pieces still at each stitching unit, and for how long
- Stock by style and size, with slow styles marked
- Returns by retailer, so a poor account shows up early
- Gross margin by season, after returns and markdowns
About the market, and about us
Traders here have a dealers' association, and the Delhi government's 2022-23 budget announced a plan to redevelop the market as a garment hub. We have not confirmed how far that has gone.
AccountOrbit takes enquiries by phone from anywhere in Delhi, including Gandhi Nagar, but has no office there. If your stitching challans and retailer ledgers are on paper, say so on the first call.
Sources checked, November 2026
- CGST Act as amended to 1 January 2022 (opens in a new tab), section 143 (read at source; check for later changes)
- ThePrint, March 2022 (opens in a new tab) (press report)
Trading garments in Gandhi Nagar?
Tell us whether you stitch or only trade, how many retailers you supply, and your billing software.
