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Job work in entire textile sector will attract 5% GST
05
Aug '17
Union Finance Minister Arun Jaitley chairing the 20th meeting of the GST Council, in New Delhi on August 05, 2017. MoS for Finance Santosh Kumar Gangwar and Revenue Secretary Dr. Hasmukh Adhia are als
Union Finance Minister Arun Jaitley chairing the 20th meeting of the GST Council, in New Delhi on August 05, 2017. MoS for Finance Santosh Kumar Gangwar and Revenue Secretary Dr. Hasmukh Adhia are als
At its 20th meeting today, the Goods and Services Tax (GST) Council has agreed to job works on entire value chain in the textile sector will only invite 5 per cent GST. This effectively means that job work on wearing apparel would attract 5 per cent GST instead of 18 per cent tax earlier. Industry bodies like the Indian Texpreneurs Federation (ITF) and Tiruppur Exporters Association (TEA) have welcomed the announcement.

“On behalf of ITF, our sincere thanks to Finance Minister and the GST Council for this decision. This shows the care from government on the industry feedback and ground reality to adjust the GST rates,” said ITF secretary Prabhu Damodaran.

“This decision will help thousands of SMEs in the textile sector and improve the efficiency in whole textile manufacturing chain,” he added.

TEA president Raja M Shanmugham too thanked the GST Council for considering the requisition of garment sssociations, particularly from Tiruppur cluster and noted that the decision is a big relief to the micro and small job working units in Tiruppur cluster. 

He said 5 per cent GST slab will help for the seamless credit flow and fulfill the objective of GST.

West Bengal finance minister Amit Mitra said that the decision will help many poor people.

Originally, the GST rates for job work on textiles and apparel was kept at 18 per cent. It was subsequently revised downward to 5 per cent during the meeting of the GST Council held on June 11. However, the revision of rates was made applicable only for job work on cotton yarn and textile fabrics, while the job work made on wearing apparel was excluded from this rate reduction. (RKS)

Fibre2Fashion News Desk – India


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