GST on Textile Jobwork Services

Decision taken in regard to Jobwork Services in textile industry taken by the GST Council in the 16th meeting held on 11th of June 2017.

It was decided that Services by way of job work in relation to Textile yarns (other than man-made fibre/filament) & textile fabrics will atrract GST rate of 5% instead of 18% which was notified dated 3rd June, 2017.

It should be noted that only yarns other than man-made fibre/filament has been categorized under 5% GST rate, which means man made yarns will be continue to be taxed at 18% with ITC. In 5% GST also, ITC will be available. In case of facrics, all type of fabrics will be covered under 5%. It is expected this step will bring little bit uniformity in textile industry as far as Input credit is concerned.

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