my client is job worker and providing tailoring and embroidery service.
what is applicability of gst????
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GST on tailoring & embroidery
Replies (2)
GST will be charged after threshold limit
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.
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