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.

AI Summary

Dyeing Units Under GST: Job Work Considered a Service, 18% Tax Rate Proposed, Awaiting Detailed Notifications A discussion forum addresses the GST provisions for a dyeing unit that processes cloth for clients. The unit, currently registered under VAT and paying VAT on 60% of invoice value, seeks guidance on GST implications. Responses indicate that job work provisions are covered under the GST Act, but detailed notifications are pending. It is noted that any process on goods is considered a service under GST, subject to CGGST/SGST or IGST, with a proposed service tax rate of 18%. Participants acknowledge that a clearer understanding will emerge upon GST implementation.