After the Ministry has announced that that only job workers or units with an annual turnover of Rs 20 lakh or more would need to register for the good and services tax (GST) there is a lot of confusion in the industry. Since the new indirect tax regime was rolled out on July 1, the textile sector has been demanding that the rates and rules be eased for it. In its latest notification, the textile ministry has not only eased the norms for job workers but has also warned of action against master weavers to register for the GST.
The development comes after the Ministry received various notices and representations from job workers. GST registration was not required for small job workers and job working units since there was a threshold exemption limit of Rs 20 lakh under the GST. The sector, however, is not happy with the notification. According to power loom and job workers, when the industry was demanding an 18-month vacation from the GST, this relief would provide little succour.
“There are a large number of small job workers with an annual turnover of less than Rs 20 lakh, whom the power loom industry, especially master weavers, has to engage. In other words, master weavers would have to pay duty on behalf of job workers. Decentralised units employ job workers’ services for weaving and embroidery work, which attracts GST at 18%.