How to Bill Under GST as a Fashion Boutique & Tailoring Studio
Navigating GST in the Indian fashion industry requires distinguishing between pure tailoring services (SAC 998822 @ 5%), raw fabrics (HSN 5007/5208 @ 5%), and finished designer garments (5% vs 12% slab threshold). Here is your complete compliance guide.
Step-by-Step Boutique GST Invoicing Guidelines
Ensure proper classification between job work tailoring and fabric sales
Separate Stitching from Fabric Material
When a client brings their own fabric for lehengas, blouses, or suits, bill the stitching as Job Work under SAC 998822 at 5% GST. If supplying the cloth as well, list fabric lines under HSN 5007/5208 separately on the invoice.
Understand the ₹1,000 Garment Slab Rule
For readymade or complete stitched garments sold off-the-rack: garments with sale value up to ₹1,000 per piece attract 5% GST. Garments priced above ₹1,000 per piece attract 12% GST.
Clearly Record Advance & Balance Payments
Custom designer studios typically take a 50% booking advance. Mention the advance receipt voucher number or specify “50% Advance Received” and “Balance Due on Trial Fitting” in the invoice notes.
Protect Against Alteration & Storage Disputes
Include your customized terms: number of free alteration trials (e.g. within 14 days), no return on custom cut fabrics, and garment storage liability beyond 30 days after intimation.
Essential HSN & SAC Codes for Boutiques & Tailoring Studios
| Code | Classification | GST Rate | Description & Scope |
|---|---|---|---|
| 998822 | Apparel Job Work / Tailoring | 5% | Stitching charges for lehengas, suits, blouses on customer fabric |
| 998821 | Alteration & Hemming Services | 5% | Fitting adjustments, length alteration, hook/zipper replacements |
| 5007 | Woven Fabrics of Silk | 5% | Pure Banarasi silk, raw silk, Tussar silk fabric material |
| 6214 | Shawls, Scarves & Dupattas | 12% | Handcrafted embroidered dupattas and stoles priced over ₹1,000 |
Frequently Asked Questions (Boutique GST Invoicing)
Under GST SAC Code 998822 ('Job work services on textile and apparel'), custom stitching and tailoring services attract a concessional GST rate of 5% when the customer provides their own fabric. If you supply the complete readymade stitched apparel including fabric, the GST rate is 5% for sale value up to ₹1,000 per piece and 12% for apparel valued above ₹1,000.
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Explore our GST Invoice Templates Hub and Composition Scheme Calculator.