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Job work up to cut panel stage attracts 5% GST

07 Jul '17
2 min read

Job work activities up to the stages of cut panel attract Goods and Services Tax (GST) at 5 per cent and the stages following the cut panel stages attract GST at 18 per cent. NJ Kumaresh IRS, commissioner, Central GST Commissionerate clarified the rates in a meeting held with the Tiruppur Exporters' Association (TEA) in Coimbatore, Tamil Nadu.

As per the clarification, job work activities such as knitting (yarn to grey fabric), dyeing (grey cloth to dyed cloth), bleaching (grey cloth to bleached cloth), rotary printing (all over printing on dyed cloth), raising, brushing and shearing (abrading the cloth), roll washing (washing cloth), compacting/stentering (removing shrinkage in cloth) and fabric cutting (fabric is cut into cloth bit) have been classified under the 5 per cent GST slab.

Job work activities following the cut panel stages such as chest embroidery (embroidery on cloth bit), chest printing (printing on cloth bit), sewing (sewing on cloth bit), garment washing (washing of stitched garments), kaja/buttoning (kaja preparation and fixing button in the garments), hand embroidery (embroidery on garments) and checking, ironing and packing (checking, ironing and packing of garments) attract a GST rate of 18 per cent.

The meeting held with Kumaresh was attended by Raja M Shanmugham, president of TEA and general secretary, executive secretary and association Auditor S Dhananjayan. (KD)

Fibre2Fashion News Desk – India

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