gst on job work related to textiles

[pawan agrawal]

There is reduced in GST Rate on job work of Yarn Process related to man made yarn from 18% to 5% on 05-08-2017. whether this change of rate is applicable from 05.08.2017 or from 01.07.2017.

Suppose I have received a job work bill on 31.07.2017 of ₹ 100000 then what gst I have to paid . ₹ 5000 or ₹ 18000. B ecause Before 05.08.2017 there is rate of gst on job work charges was 18% and now it is 5%.

[KASTURI SETHI]

Reduced rate of tax cannot be effective retrospectively until or unless it is mentioned in the notification per se specifically.

[Rajagopalan Ranganathan]

Sir,

The GST council has recommended to reduce the rate of gst on Job work in the textile industry to 5%. At present man made fibres are excluded from the levy at the rate of 5% vide Sl. No. 26 (b) of Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017. This recommendation will come into effect from the date from which this entry is suitable amended by the Government. Till such time the gst rate will be 18%.

[rajkumar shukla]

Following the GST council decision , notification shall be issued by the govt .the effective date would be date of notification unless specifically a date is mentioned in the notification.

AI Summary

GST rate change on job work: new rate applies only from the government notification date unless retroactivity is specified.
A recommended reduction in the GST rate for job work in man made yarn does not take effect until the government issues a notification amending the relevant entry or specifies an effective date; until such notification, job work supplies remain taxable at the prior rate and compliance (invoicing, return reporting, tax payment) must follow the notified rate.