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What is GST readymade clothing?
While currently manmade yarn and fibre have been taxed at 12\%, readymade garments priced below Rs 1,000 are taxed at 5\% creating a problem for a trader to avail input tax credit.
What is the impact of GST on textile industry?
On the recommendations of the GST Council, the Central Board of Indirect Taxes and Customs (CBIC) announced that the GST rate on garments, textiles, and footwear would be raised from 5\% to 12\% with effect from January 1, 2022.
How do you calculate GST on readymade garments?
Readymade garments of sale value not exceeding Rs. 1000 per piece attract 5\% GST. Readymade garments of sale value exceeding Rs. 1000 per piece attract 12\% GST.
Is GST going to increase on clothes?
Clothes, footwear to get more expensive Finished goods such as apparel, footwear and textiles are set to get more expensive from January 1, 2022 with the Union government increasing the GST on such items from 5\% to 12\%. The GST rate on apparel costing up to Rs 1,000 per piece has been hiked from 5\% to 12\%.
What is the HSN code of readymade garments?
HSN Code 6111
| HS Code | Description | GST\% |
|---|---|---|
| 611120 | Babies’ garments and clothing accessories of cotton, knitted or crocheted (excluding hats) ,Products include: Readymade Garments Bangladesh | 0\% |
| 611130 | Babies’ garments and clothing accessories of synthetic fibres, knitted or crocheted (excluding hats) | 0\% |
What is product tax code for clothing?
GST Rate for Garment, Apparel and Clothing Knitted apparel and clothing fall under chapter 61 of the HSN code. Apparel and clothing not knitted fall under chapter 62 of the HSN code. Under both categories, any piece of apparel or clothing would be taxed at 5\% GST if the taxable value of the goods does not exceed Rs.
Do we need GST on textile?
GST on Textiles and Textile Products If the sale value of the textile product is less than Rs. 1000, then a GST rate of 5\% is applicable. If the sale value is more than Rs. 1000, then a GST rate of 12\% is applicable.
Is garments exempted from GST?
Knitted apparel and clothing fall under chapter 61 of the HSN code. Apparel and clothing not knitted fall under chapter 62 of the HSN code. Under both categories, any piece of apparel or clothing would be taxed at 5\% GST if the taxable value of the goods does not exceed Rs. 1000 per piece.
What is the HS Code of textile?
HS Code 5911 | Harmonized System Code Of TEXTILE PRODUCTS AND ARTICLES, FOR TECHNICAL USES, SPECIFIED IN NOTE 7 TO THIS CHAPTER.