REDUCED RATE OF GST FOR JOB WORK ON READYMADE GARMENTS : GST COUNCIL DECISION 5TH AUG, 2017
In a major relief to the Ready Made Garment sector, the GST Council has reduced the Rate of GST on Job Work of Readymade Garments and made-ups from 18% to 5%. Several landmark decisions have been taken in the 20th Meeting of the GST Council relating to reduction in the rate of Tax on specific Works Contract Services, allowing optional 12% GST Rate for Rent a Cab and GTA Service with full ITC Credit. GST is one of the most radical Tax reforms in the history of India and implementation of such a massive reform in a country with 1/5th to the total worlds population is itself exemplary. The government is taking lot of effort in making it as business friendly as possible and it is expected that very soon there will see a smooth and tax payer friendly GST.
We are enclosing the summary of major decisions taken by the GST Council in its 20th Meeting held on 5th of August, 2017:-