GST RATE ON JOB CHARGES ON MAN MADE FABRICS (PROCESSING HOUSE)

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This discussion clarifies the Goods and Services Tax (GST) rates applicable to job charges for processing man-made fabrics. While individual processes like bleaching and washing may attract a 5% GST, when these are bundled with principal services such as dyeing and printing within a single manufacturing unit, the overall GST rate can be consolidated to 12% or 18%, depending on the principal's registration status.

siby k chacko

siby k chacko (Querist)
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12 October 2024 Dear Sir
What is the GST Rate of job charge son man made fabrics (textile house)

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 October 2024 For Registered principal the job work of various processes being done by independent job workers is at the following rates:-

Bleaching: 5%

Washing: 5%

Dyeing: 12%

Printing: 12%

Stentering: 5%

Felt Finishing: 5%

siby k chacko

siby k chacko (Querist)
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12 October 2024 IN OUR MANUFACTURING COMPANY THEY ARE INCLUDED IN ONE COMPANY IN OUR UNIT .
IT MEANS OVER ALL RATE IS 5% RIGHT ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 October 2024 Such the transaction takes the color of composite supply wherein the ancillary processes get naturally bundled with the principal service of dyeing and printing. Resultantly, even though the ancillary processes attract 5% GST rate, they are liable to a consolidated GST rate of 12%/18% depending upon the fact whether the principal is registered or not.

siby k chacko

siby k chacko (Querist)
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12 October 2024 OK SIR THANK YOU SIR FOR REPLY MY QUERY

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 October 2024 You are welcome.

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