Federation of Indian Exports Organisation (FIEO) has urged the government to bring textile job works including embroidery, cutting and garmenting under the 5 per cent GST slab. As tasks like finishing, packing, washing or pressing, dyeing, knitting and more are outsourced by manufacturers, the association has appealed to place them under the lowest slab.
In a letter sent to finance minister Arun Jaitley, FIEO has said that job work in cotton, MMF and blend need to be taxed at 5 per cent, uniformly for made-ups, garments, fabrics and yarn, irrespective of fibre base and whether woven or knitted.
Apparel manufacturing industry is dependent upon job work and the segment should be included in the 5 per cent slab of the upcoming tax regime, said media reports quoting the association.
The GST Council is expected to come to a conclusion regarding the demands of various textile associations of classifying job work for different segments under the 5 per cent slab, during the meeting to be held on June 18. (KD)