GST on grey fabric and on job work — the plain sums.

Most waterjet and airjet weaving units in Surat weave grey fabric from polyester or other man-made fibres. Some buy their own yarn and sell their own cloth, some only weave a party's beam and weft yarn (job work), and many do both. GST works slightly differently for the two, so the first question is always: is this invoice for goods or for a service (job work)?

1. GST on a grey fabric sale

Woven grey fabric of man-made fibre (HSN chapter 54 / 55, e.g. 5407) generally carries 5% GST. Confirm the exact HSN and rate for your quality with your CA once, and use it on every invoice.

• Sale within Gujarat (both GSTINs start with 24): CGST 2.5% + SGST 2.5%.
• Sale to another state (the party's GSTIN does not start with 24): IGST 5%.
• The state is the first two digits of the GSTIN — 24 Gujarat, 27 Maharashtra, 08 Rajasthan and so on.
• The invoice total is rounded to the rupee, with the round-off shown on its own line.

Try the same sums with your own numbers in the GST calculator.

2. GST on job work (weaving charges)

When a party gives you its beam and weft yarn and you only weave, you are not selling cloth — you are providing a service. That invoice is a job bill under SAC 998821 (textile job work), and it is generally also 5% GST. The CGST + SGST or IGST rule is the same as above.

How the job charge is worked out can differ from market to market. If rates where you work are quoted in paise per pick:

Some quote ₹ per lakh picks instead: ₹ / m = PPI × 39.37 × rate ÷ 1,00,000. The job rate converter switches between the two.

3. TDS in brief

• 194C on job work and contracts: 1% (individual / HUF) or 2% (others), on the value excluding GST when GST is shown separately. It applies once a single bill is over ₹30,000 or the year's total is over ₹1,00,000.
• 194Q on purchase of goods: a buyer whose turnover was over ₹10 crore last year deducts 0.1% on purchases from one seller above ₹50 lakh in the year — only on the part above ₹50 lakh.
• From 1 April 2026 the Income-tax Act, 2025 applies and renumbers these sections, but the market and most software still say 194C / 194Q. Confirm rates and limits with your CA.

4. E-way bills

An e-way bill is generally needed when a consignment is worth more than ₹50,000. One point for job work: when goods go from a principal in one state to a job worker in another state, an e-way bill is needed whatever the value.

Practical tips for a Surat weaving unit

• Get the GSTIN right in the party master — the state and the tax type come from it. A wrong GSTIN means the wrong CGST / IGST.
• Keep sale invoices and job bills in separate series so HSN and SAC lines stay clean in GSTR-1.
• Show both metres and picks on a job bill so the party can see how the rate was worked out.
• Reconcile TDS deducted by parties with your TDS statement every month.

How Loomiro helps

In Grey Sale (F2) you pick takas by number or range, rates come from the quality and design, and CGST + SGST or IGST is applied from the party GSTIN's state code. Enter a GSTIN and the PAN and state fill in; round-off is automatic. The invoice carries the e-way bill number, transporter, LR and vehicle number, and you get a JSON file for bulk upload on the NIC portal — there is no direct e-way bill / e-invoice API yet. Job bills use SAC 998821, and GSTR-1 (B2B, CDNR, HSN) CSVs and the GSTR-3B summary are kept separately for each firm. TDS a party keeps is adjusted against the bill when you enter the receipt.

This is general information, not tax or legal advice. Confirm the HSN, rate, TDS and e-way bill rules for your quality with your CA.