T E Narasimhan
Chennai, 25 July
The Ministry of Textiles
has clarified that GST
registration is not required for job workers/ job units
whose annual turnover does not exceed Rs 20 lakh. The ministry has also warned of action against master weavers who insist small job units
must themselves GST
The development comes after the ministry received various notices and representations from job workers
saying that a few master weavers and grey cloth traders are insisting job workers
and job working weaving units with turnover of less than Rs 20 lakh get themselves GST
J L Balakumar, deputy director and officer-in-charge at the Ministry of Textiles
said that GST
registration is not required for job workers
and job working units in case of their annual turnover (intra-state) does not exceed Rs 20 lakh, since there is a threshold exemption limit of Rs 20 lakh under GST.
Therefore, if master weavers or grey cloth traders insist on GST
registration, the office will be constrained to take suitable action against them, Balakumar said in a circular signed by him.
P Kumaraswamy, secretary of the Coimbatore District Job Working Powerloom
Unit Owners’ Association said that the notification comes as a great relief for powerloom
units, which were under pressure from master weavers.
He noted, there are around 600,000 powerloom
units in Tamil Nadu alone, but 80 per cent of them achieve a turnover of about Rs 10-12 lakh only.
"They (master weavers) have been insisting for GST
registration, so we took up the matter to the Ministry and now it has been clarified," said Kumaraswamy, adding that the sector continues to be under pressure post GST
Kumaraswamy noted only 20 per cent of the units post GST
are working, with very little job work flowing in from the master weavers, who are sitting with huge stocks they they aren't able to dispose due to non-availability of proper bills.
"We hope that everything will come back to normal within the next two months. GST
is a good thing, it would help to streamline the system in the long run," said Kumaraswamy.