COIMBATORE: Even as the GST for job working units in textiles has been cut from the proposed 18% to 5%, apparel, a major segment in the textile value chain, has been left out of the reduction. Garment exporters in Tirupur are now urging the government to levy only 5% GST for job working units in the apparel segment.
Only services classified as ‘job work in relation to yarn and fabrics of textiles’ are eligible for the reduced rate of 5%. “This negative step would cause huge hardship to several micro industries in textile clusters like Tirupur,” said Raja M Shanmugham, president, Tirupur Exporters’ Association (TEA).
In textile clusters like Tirupur a host of operations like garment printing, embroidery, garment washing, ironing and packing are carried out by micro industries on a job work basis only, he said. “Some of these processes such as checking, ironing and packing and button fixing are actually carried out by people who take work to their home for job work,” he said in a representation to Union finance minister Arun Jaitley.