A customer brings fabric to your tailoring shop and pays ₹1,000 for stitching. Should the bill include GST? What if you also sell a ready-made kurta, or buy cloth yourself and deliver the finished garment?
The answer starts with what you supply and whether you are registered under GST. The notified rate for the specific entry tailoring services under Heading 9988 is 5%, but a garment sale and other textile-processing arrangements need their own classification. This guide explains the distinction, registration thresholds, example invoices, input tax credit and everyday compliance in plain language.
Quick answer: The CBIC services rate schedule lists tailoring services under Heading 9988 at 5% GST (generally 2.5% CGST + 2.5% SGST for an intra-state supply, or 5% IGST for an inter-state supply). This does not mean every sale made by a boutique attracts 5%. A person who is not required to register and has not voluntarily registered ordinarily does not collect GST merely because the service is taxable. Check the CBIC rate table Official ↗.
What is the GST rate on tailoring services in India in 2026?
The CBIC's notified service schedule places the specific entry "Tailoring services" under Heading 9988 — Manufacturing services on physical inputs (goods) owned by others, showing 2.5% central tax and 2.5% state tax, totalling 5%. This generally covers services such as stitching garments from customer-supplied cloth or performing tailoring work. Where the transaction also involves selling material or a finished garment, classify the actual supply rather than assuming the same rate applies automatically.
| Supply or transaction | Practical treatment | What to check |
|---|---|---|
Stitching a shirt using fabric brought by the customer | Tailoring service; specified 5% entry | Description of service and applicable place-of-supply rules |
Altering trousers or adjusting a blouse | Generally tailoring/alteration work; examine correct service classification | Whether the invoiced work falls within the tailoring entry |
A boutique sells a ready-made shirt | Supply of goods, not automatically a tailoring service | Garment HSN, value-based rate conditions and current goods schedule |
Tailor sells cloth and supplies a finished stitched garment for one price | Classification depends on contractual facts and nature of supply | Goods-versus-service and any composite/mixed-supply issues |
Job work for a garment manufacturer | May qualify under a separate job-work description | Ownership of inputs, customer's registration and applicable notification |
Do not copy the 5% tailoring rate onto all boutique invoices. Garment sales, embroidery, fabric trading and manufacturing for another business may follow different entries. For service searches use the official GST HSN/SAC search Official ↗ and read the applicable rate notification.
GST invoice examples for a tailoring shop
Example 1: stitching charges of ₹1,000
Assume the tailor is GST-registered, the supply is taxable under the tailoring-services entry, and both supplier and place of supply are in the same state.
| Particulars | Amount |
|---|---|
| Stitching charge (taxable value) | ₹1,000 |
| CGST at 2.5% | ₹25 |
| SGST at 2.5% | ₹25 |
| Total invoice | ₹1,050 |
For an inter-state supply attracting 5% IGST, the tax would instead be ₹50 on the same taxable value, subject to place-of-supply rules. These figures are illustrations, not a statement that every customer order is inter-state or that every tailor must charge GST.
Example 2: stitching plus ready-made garments
A customer pays ₹800 for alteration work and ₹2,000 for a ready-made outfit. Do not apply 5% to the combined ₹2,800 solely because both items came from a tailoring shop. Determine the service and garment classifications separately, and show the relevant rates and values on the invoice. If the contract is a single bundled supply, examine the composite/mixed supply rules before deciding how to bill it.
Does a small tailor need GST registration?
For most suppliers of taxable services, the general registration threshold is ₹20 lakh in aggregate annual turnover on an all-India PAN basis. A ₹10 lakh services threshold applies in certain specified states—CBIC's updated guidance identifies Manipur, Mizoram, Nagaland and Tripura. These thresholds are subject to any special compulsory-registration rule applicable to the specific business. The relevant measure is aggregate turnover, not simply the amount of stitching income at one shop.
The original version of this article listed many additional states as if all still used the lower service threshold. That is not a reliable current generalisation. Refer to the applicable statute and official CBIC registration update Official ↗.
What if tailoring work is provided to customers in another state?
Inter-state services do not automatically mean registration from the first rupee. Notification 10/2017–Integrated Tax provides relief for qualifying interstate suppliers of taxable services below the applicable turnover threshold. Other provisions may still require registration, so assess the actual activity before relying on the exemption. See CBIC Circular 88/07/2019-GST Official ↗.
Should a tailor register voluntarily?
A tailoring business may choose voluntary registration to issue tax invoices or seek eligible input tax credit. But voluntary registration also brings tax collection, return filing and recordkeeping obligations. For a small business serving individuals who cannot use input tax credit, those costs may outweigh the advantages. It is a commercial choice, not an automatic benefit.
Can tailoring businesses claim input tax credit?
A registered taxpayer under the regular scheme may generally claim eligible input tax credit subject to Sections 16 and 17, documentary conditions, return requirements and any rate-specific restrictions. Examples of potentially relevant expenses include business machinery, eligible business inputs and services used for taxable supplies. Personal purchases, blocked credits, or credits not supported by proper tax invoices cannot simply be claimed.
If a business operates under a composition scheme, it generally cannot claim ITC and must not charge GST as a regular taxpayer would. Do not assume that every tailoring establishment can or should opt for composition: verify whether it meets the conditions for its actual mix of supplies. GST registration guide may help with the options.
How to register a tailoring business for GST
GST registration at a glance
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Check eligibility
Combine all-India PAN-based turnover, review your supply types and any compulsory-registration triggers.
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Collect documents
Prepare PAN, Aadhaar or other valid KYC, business-address evidence, banking details where required and authorisation documents if applicable.
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Apply online
Visit the official GST portal Official ↗ and choose Services → Registration → New Registration.
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Complete verification
Follow the portal's authentication, document-upload and clarification steps applicable to your case.
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Receive GSTIN
Once approved, confirm your registration details and configure your invoices and returns correctly.
Registration does not replace local business licences or other industry-specific requirements. A shop that begins selling clothing as goods should also review whether its service-only assumptions remain valid.
GST invoicing and return-filing checklist
- Display your correct legal/trade name, GSTIN and invoice particulars where a tax invoice is required.
- Identify the relevant service classification (SAC) or goods HSN; verify that the code and rate correspond to the actual supply.
- Show taxable value and CGST/SGST or IGST as applicable, rather than hiding tax inside an ambiguous total.
- Maintain sales, purchase, credit-note, and tax-payment records, with supporting invoices.
- Check applicable GSTR-1 and GSTR-3B filing frequency, including whether QRMP is available and elected.
- Reconcile sales and eligible ITC before filing, and separately account for goods sales if the boutique has them.
For the practical filing process, see GST return filing services. The GST portal Official ↗ is the authoritative place to check your active registration and filing obligations.
Common mistakes tailors and boutiques should avoid
Treating every transaction as tailoring
Stitching, repairs and alteration may differ from sales of new garments or fabric. Work done on materials owned by another business can also need a distinct job-work analysis. Write down what the customer provides and what the shop delivers.
Charging GST without registration
An unregistered person should not issue a GST tax invoice or collect tax as though GST-registered. If turnover is approaching the threshold, plan registration and invoice-system changes promptly.
Using old state threshold lists
Do not copy an outdated list of 10-lakh states from a general online article. The position for services should be checked against current official rules and the business's circumstances.
Claiming every purchase as ITC
A shop's receipts for furniture, fabric, sewing machines or electricity are not automatically creditable. Check GST charged, the invoice, business use, blocked-credit rules and the applicable tax scheme before claiming.
Is GST on tailoring different from GST on clothes?
Yes. Tailoring is a service classification, whereas a ready-made garment is generally a supply of goods. Even if a customer buys both from the same boutique, the rate and reporting requirements cannot be determined from the shop's name alone. For garment goods, use the current goods rate schedule and correct HSN; do not assume that a historic garment rate still applies after rate changes.
Final takeaway
If you are paying someone to stitch clothing from your fabric, the specified tailoring-services entry under Heading 9988 provides a useful starting point: 5% GST when GST is applicable. But first check whether the supplier must register and whether the transaction truly is a tailoring service rather than a sale of goods or another form of job work.
TaxQue can help review GST registration, classification and return-filing requirements for tailoring shops and boutiques. Explore GST services
Official sources
- CBIC GST services rate schedule Official ↗ — Heading 9988 and tailoring-services entry.
- CBIC GST registration and thresholds update Official ↗ — service registration limits and inter-state service relief.
- CBIC Circular 88/07/2019-GST Official ↗ — clarification on certain job-worker registration scenarios.
- GST HSN/SAC lookup Official ↗ — classification lookup.
- GST portal Official ↗ — taxpayer registration, payment and returns.
