What is "job work" in the Indian textile industry?

Job work in the textile industry refers to contract manufacturing services — where one party provides raw material and another party performs a specific processing task for a fee per unit or per meter.

Common examples in Surat textile trade:

• Sending grey fabric to a dyeing unit to dye in specific colors
• Sending fabric to a digital printing unit to apply designs
• Sending cut fabric pieces to a stitching unit for garment assembly
• Sending finished garments to an embroidery unit for embellishment

GST on job work: Job work in the textile sector attracts 5% GST. The principal (material owner) remains responsible for the material while it is with the job worker.

This model allows small textile entrepreneurs to manufacture products without owning all the machinery — using a network of specialized job workers across Surat cluster.