Bengaluru sources have stated that the imposition of 5% GST on job work in the textile sector is expected to badly hit the industry across India, especially States like Karnataka that has a large number of garment and textile units. It was stated that Karnataka contributes 20% to the country’s apparel production.
Recently many textile shops in Bengaluru remained shut in protest against the new tax regime on Friday. Cloth markets in major cities in Gujarat too were shut. Previously it was stated that the GST council had clamped 18% tax on job work but reduced it to 5% following protests and textile job works such as cutting, embroidery, finishing, washing or pressing, packing, bleaching, dyeing, printing, knitting, and coloring has been brought under the 5% GST slab.
Earlier it was reported that there was no tax for
these works. Industry representatives have decided to meet Textile Minister
Smriti Irani seeking tax exemption for the sector.