Single Pack of Two 'Pajama Sets' under ₹2,500 Attracts 5% GST: AAAR terms it "Single Retail Unit" [Read Order]
It is to be noted that as per Notification No. 9/2025 - Central Tax (Rate) dated 12.09.2025, the rate of GST on Men’s Pyjama sets has been changed.
![Single Pack of Two Pajama Sets under ₹2,500 Attracts 5% GST: AAAR terms it Single Retail Unit [Read Order]](https://images.taxscan.in/h-upload/2026/04/24/2134408-single-pack-of-two-pajama-sets-under-2500-.webp "Single Pack of Two Pajama Sets under ₹2,500 Attracts 5% GST: AAAR terms it Single Retail Unit [Read Order]")
The State Appellate Authority for Content Area (AAAR) in Tamil Nadu ruled that a single pack of two pajama sets that includes 2 shirts and 2 pants is a “single retail unit”. Accordingly, the Authority ruled that Goods and Service Tax (GST) at 5% may be charged on the set costing ₹2,500. The applicant, M/s Link Up Textiles Private Limited, was registered under the...
The State Appellate Authority for Content Area (AAAR) in Tamil Nadu ruled that a single pack of two pajama sets that includes 2 shirts and 2 pants is a “single retail unit”. Accordingly, the Authority ruled that Goods and Service Tax (GST) at 5% may be charged on the set costing ₹2,500.
The applicant, M/s Link Up Textiles Private Limited, was registered under the GST Act, 2017. The applicant applied for Advance Ruling regarding queries on HSN code and applicable GST rate on two Men’s Pajama Sets packed in a single pack. The appellant-applicant contended that the effective rate per set value exceeds Rs. 1,000 and therefore, the applicable rate is 12% and not 5%.
The appellant-applicant was represented by G. Shanmugam for personal hearing. The counsel was apprehensive that they should not be asked to return the excess IGST refund for the past period and requested clarification on this matter.
AAAR found that the appellant is packing 2 sets of pyjamas, i.e., 2 shirts and 2 pants in one pack in a single pack as per the requirements of their customer abroad. The Authority was of the view that one pack consisting of two pyjama sets cannot be considered as one piece.
As per Notification No. 9/2025 - Central Tax(Rate) dated 12.09.2025, the rate of GST on Men’s Pyjama sets has been changed. With effect from 22.09.2025, GST on Men’s Pyjama sets costing less than INR 2500 /- per piece is qualified to be chargeable to GST at the rate of 5% (CGST-2.5% + SGST-2.5%) .
The ruling pronounced against the applicant-appellant by the AAR in Advance Ruling No. 42/ARA/2025 dated 08.10.2025 was upheld, accordingly. The bench of Madan Mohan Singh (Principal Chief Commissioner of GST & Central Excise) and S. Nagarajan (Commissioner of Commercial Taxes) dismissed the appeal, noting the description in Schedules I and II of Notification No. 9 in Chapter 62.
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