gst provisions for dyeing of cloth unit

[satbir singhwahi]

Sir

Please guide the Gst provisions for Dyeing unit , which receives cloth form party for dyeing job work,and returns the same after dyeing and processing.Presently registered under Vat and paying Vat on 60 % of invoice value.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got the provisinal ID for migration?

[Himansu Sekhar]

Job work provisions are covered in gst act. But the detail notifications equivalent to 214/86 has not been published. At this juncture offer an comment on this subject is not possible.

[KASTURI SETHI]

When we talk of GST leviable on 'supply' the concept of 'manufacturing process' may dyeing or any other process will not come into picture. Clear picture on all issues will surface on implementation.

[satbir singhwahi]

Sir

GST provisional ID received.

[CSSANJAY MALHOTRA]

Any process undertaken on goods is defined as service in GST and is chargeable to CGGST/SGST (service rendered within state) or IGST (service rendered outside state). As of now, GST on services has been proposed at 18%, Lets wait and watch till final rates come in for services.

[KASTURI SETHI]

Sh.CS Sanjay Malhotra ji,. Sir, Thanks for enrichment of my knowledge.

AI Summary

Job work as service attracts GST, treated as intra state or inter state supply subject to CGST/SGST or IGST. Where a unit receives cloth for dyeing and returns it after processing, the activity is characterised as job work and the processing constitutes a service under GST. Such services will attract GST as either an intra state supply charged to CGST and SGST or an inter state supply charged to IGST, subject to final rate notifications and rules on job work. Registration migration from VAT to GST and compliance with forthcoming notifications are required.