With tailoring of wearing apparel attracting 18 per cent Goods and Services Tax (GST), tailors fears losing out customers due to hike in subsequent stitching charges.

In a memorandum to the Punjab finance minister, Manpreet Singh Badal, the Punjab Tailoring Association (PTA) on Tuesday said the high GST rate on tailoring as a service will render tailors  unemployed as the high stitching costs will turn away customers towards readymade apparels.

The PTA pointed out in the memorandum that wearing apparel is a basic need of every human being as compared to gold which attracts only five per cent GST.

"Due to the need of every person more persons are involved in this line of wearing apparel manufacturing service as compared to gold. So, liberal view should be taken for imposing tax on wearing apparel manufacturing services," the PTA said in the memorandum.
The delegation of PTA, which met Badal, demanded an amendment in GST for reducing the tax on stitching from 18 per cent to five per cent.

The minister, Badal, assured PTA  that he will raise this issue in the GST council meeting to be held on 5 August in New Delhi. The GST council, chaired by Union finance minister Arun Jaitley and comprising state counterparts, will meet to review implementation of the new tax regime.

"Tailoring comes under job work but after the implementation of GST regime from July 1, we are coming under 18 per cent tax slab as manufacturing service. However, manufacturing of gold jewellery has been considered in the job work imposing tax of five per cent," said  PTA president, Jagat Verma, addressing a Press conference later.

He further said that most of the people involved in tailoring are illiterate and the high imposition of 18 per cent tax has put their life at stake. It is difficult for tailors to prepare the account books as per the GST regime is wholly computerised.
"If there won't be any amendment in the current tax slab for tailoring category, then we will definitely take this matter to the court,'' Verma said.

"It is unfair and biased. Not only Punjab Association but all the tailoring association from other states like Jammu and Kashmir, Himachal Pradesh, Haryana, etc, all over  India are facing the same problem and will submit their memorandums to their concerned authorities in their respective states,'' said general secretary, PTA, Bhagwan Singh Namdhari.