12 July 2017
1) What is the GST rate on job work of embroidary work 2) and it is under which HSN code?? 3) What are the documents required to be maintained every month?? 4) Is it beneficial to opt composition scheme?? (turnover less than 50Lakhs)
12 July 2017
If job work is done for garments manufacturer GST will be paid by him you need not pay GST. In case you are providing such services to individuals then GST applicable. 1 18% GST applicable claim ITC on inputs. 2 SAC code applicable. 3 Issue tax invoice register under GST and maintain books of accounts. 4 Composition scheme not available for service provided.
27 July 2024
### GST on Job Work for Embroidery Work
1. **GST Rate on Job Work of Embroidery Work:** - The GST rate on job work for embroidery work is **18%**. This is because embroidery job work falls under the category of "services" and is typically classified under the standard GST rate for job work services.
2. **HSN Code for Embroidery Work:** - **HSN Code:** 9988 - **Description:** The HSN code for embroidery work as a job work service is typically **9988**, which is used for "Other support services" including job work services in textiles.
3. **Documents Required to be Maintained Every Month:** - **Tax Invoice:** Issued for each job work transaction. - **Work Orders:** Documentation from the client outlining the scope of work. - **Delivery Challans:** If applicable, showing the movement of goods. - **Payment Receipts:** Evidence of payment received for the job work. - **Records of Input Tax Credit:** If any, for the GST paid on inputs or services. - **Job Work Registers:** Details of job work performed and the quantity of goods processed. - **GST Returns:** GST returns filed for the respective period.
4. **Composition Scheme Consideration:** - **Eligibility:** Under the GST composition scheme, businesses with a turnover of less than ₹1.5 crores (or ₹75 lakhs for special category states) can opt for a simplified tax regime. - **GST Rate under Composition Scheme:** Typically, the composition scheme rate is 1% for manufacturers and traders and 5% for restaurants. The scheme does not cover service providers except for certain specified services. - **Job Work:** Since job work services are generally not covered under the composition scheme, opting for the composition scheme may not be beneficial for a business primarily engaged in job work services like embroidery. You will need to charge GST at the standard rate of 18% and comply with regular filing requirements.
### SAC Code for Embroidery Work - **SAC Code:** 9988 - **Description:** This code covers job work and support services not specifically mentioned elsewhere, including embroidery services.
**Clarifications:** - **Chapter 58 and 60:** These chapters pertain to the goods in which embroidery work is applied, but for job work services, the relevant SAC code is **9988** and the rate is **18%**. - **SAC Code for Services:** The SAC code helps in classifying services for GST purposes. For job work related to embroidery, **9988** is the appropriate classification.
**Recommendation:** - **Consult a Tax Professional:** Given the complexities of GST and the specifics of different classifications, it is advisable to consult with a tax professional or GST consultant to ensure accurate compliance and optimal tax strategy for your specific business operations.
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