The CBEC issues a set of Frequently Asked Questions (FAQs) on the applicability of Goods and Services Tax (GST) applicable to textiles sector wherein it was clarified that sarees would attract 5% GST.
Clearing the air over whether sarees will be treated as garments or fabric, the Board said sarees are treated as fabric and it remains so even after embroidery, etc as no new item emerges having a distinct name, character, and use.
With regard to dress materials, it clarified that if the sale value if not exceeding Rs 1,000 then a 5 percent GST will be levied and in cases where it exceeds Rs 1,000, a 12 percent GST will be charged.
As per the GST rate decided by the GST Council last month, all categories of fabric attract a 5 percent rate. Man-made apparel up to Rs 1,000 will attract a 5 percent tax and those costing above Rs 1,000, will attract 12 percent.
Regarding the sale of old dhotis, the FAQs said it would be treated as “worn clothing” which would be taxed as apparel based on the sale value.
Read the Full Text of the FAQs Below
