GST on Tailoring Service in India
Tailoring is a vital part of India’s clothing and fashion industry—from local darzis to designer boutiques. But is GST applicable when you get your clothes stitched? And if you run a tailoring business, should you charge GST? Let’s simplify the rules around gst on tailoring service in India, and how it applies to both customers and tailors.
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Is GST Applicable to Tailoring Services?
Yes, tailoring services are taxable under GST, as they involve labour, skill, and some materials. They fall under the category of job work or customised service depending on the business model.
GST Rate on Tailoring Services
| Service Type | SAC Code | GST Rate |
|---|---|---|
| Tailoring of garments (job work) | 9988 | 5% |
| Fashion designing + tailoring combo | 9988 | 18% |
| Tailoring for uniform contracts | 9988 | 5% or 12% |
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GST on Tailoring Services: Explained
| Scenario | GST Rate | Remarks |
|---|---|---|
| Local tailor stitching your own fabric | 5% | GST applies if tailor is registered |
| Designer boutique offering design + tailoring | 18% | Treated as composite supply |
| Uniform stitching for schools/companies | 5% or 12% | Depends on contract type and turnover |
GST Registration for Tailors and Sewing Businesses
- ₹20 lakh turnover threshold in general category states
- ₹10 lakh in special category states
- Home-based tailors are exempt unless they register or exceed limits
Input Tax Credit for Tailoring Businesses
- Sewing machines and stitching equipment
- Fabric and accessories (if billed as part of the service)
- Rent and utilities for shop or workspace
- Marketing and consultancy services
Learn how to claim Input Tax Credit (ITC) if you’re a registered tailoring business.
Understanding the gst on tailoring services helps both customers and service providers stay tax-compliant and accurately price their services, whether it’s a simple alteration or a custom designer outfit.
Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone!
Frequently Asked Questions (FAQs)
- What is the GST on tailoring service in India?The GST on tailoring is 5%, if it’s a pure stitching service using material supplied by the customer.
- What is the tailoring service GST rate for designer boutiques?If the service includes designing, fabrics, and stitching, it becomes a composite supply, taxed at 18%.
- Do small tailors need to register for GST?No, if their turnover is below ₹20 lakh. GST applies only when the business exceeds the threshold and is registered.
- What is the GST rate on tailoring services for school uniforms?Usually 5%, but may vary if materials are supplied or it’s a full-service contract.
- Can tailoring businesses claim Input Tax Credit?Yes, on business-related purchases and services, if they are GST-registered.
