By industry
Textiles: spinning, weaving, processing
Textile units track material by lot and count, send a lot of it out for sizing, dyeing and processing, and buy inputs at a higher GST rate than they sell at.
Who uses it: Spinning mills, weavers, powerloom units and processing houses in clusters such as Coimbatore, Karur, Erode and Salem.
Common problems without an ERP
- Lots get mixed between job workers.
- Credit piles up because inputs are taxed higher than fabric.
- Waste and shortage at each stage are not measured.
What the company gains
- Every lot tracked through each process and job worker.
- Input tax credit visible by rate.
- Waste and yield per stage.
Numbers to watch
- Yield per stage
- Stock at job workers
- Accumulated input tax credit
Government rules to follow
- GST rates
- Most yarn and woven fabric is 5% since 22 September 2025.
- Inverted-duty refund
- CGST Act s.54(3): unused credit is refundable where input tax is higher than output tax, so track credit by rate.
- Job work and ITC-04
- Challan for every outside process; ITC-04 half-yearly above ₹5 crore turnover, otherwise yearly.
- E-way bill
- Above ₹50,000 consignment value; job-work moves between states need one at any value.
In ARUKZ ERP today
Try it free- Lots and serials
- Job work challans
- Job worker's side of job work
- ITC-04 file
- Inventory across locations
- GST invoices
Not yet: Refund working papers are not built yet.
Rules checked on 7 November 2026. Laws and limits change; confirm with your CA before you act on them.