TaxTMI 
TaxTMI 
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.
gst provisions for dyeing of cloth unit
10 May 2017 
6 Replies 
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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. (AI Summary)
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. (AI Summary)