Master TDS & TCS Provisions with Critical Issues. Register Now!

GST on tailoring & embroidery

shikha sodhi (1 Points)

25 March 2017

my client is job worker and providing tailoring and embroidery service.
what is applicability of gst????

Reply
Follow
Share

2 Replies

Rajesh (Proprietor) (70 Points)
Replied 26 March 2017

GST will be charged after threshold limit

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 26 March 2017

The rates of for each industry is not out. We can ssume it would be 12%.

The trader/ manufacturer can send the fabric with the material to the job worker without payment of GST following the job work procedure. The job worker would not need to keep any record except he need to bill for job work done if over Rs. 20 lakhs for the year. Whether he would be eligible for the compistion scheme upto Rs. 50 lakhs is not clear.

If he is a registered person then whether thread sent or not the supply can be under exemption by the principal who chooses to pay or on charge of GST. The second option is preferable to capture the Input tax credit and JW can charge the GST on the value of fabric as diclsoed by the principal + JW charges inclusive of the thread etc. Here the 18% credit on the input services, 18% on the thread + consumables etc would be eligible for credit.

One would have to make a choice depending on the value addtion also.