Tirupur firms hail rate cut on job works

The decision taken a little more than a month after implementation of GST has given a sigh of relief for exporters and those taking up job works, as most of the small job work units had been out of business over the last few weeks. Tirupur Exporters Association (TEA) president Raja M Shanmugham thanked the GST Council for considering their request.

Some of the job works that fell under the 18 per cent slab were chest embroidery, chest printing, sewing, garment washing, kaja or buttoning, hand embroidery, checking, ironing and packing. While these job works have been brought under the 5 per cent slab, knitting, dyeing, bleaching, rotary printing, raising, brushing, shearing, roll washing, compacting and fabric cutting were among those job works that were already under the 5 per cent slab.

However, Shanmugham expressed concern over the council not considering reduction of GST rate for Man-Made Fiber (MMF) yarn from the prevailing 18 per cent to 12 per cent. He hoped that the GST Council would consider this requisition in their next meeting.