What should be preferable in Embroidery business: 1. Buy cloth at 5 %. do Embroidery work. And resale at 5% or 2. Do Embroidery at 18%?
As of now the first option looks better.
On Embrodiery work, GST rate will be 18%, not 5%. So your output tax liability will be of 18% and input tax credit will be of 5%.
Input is textile and output is textile.. then why 18%?