Embroidered sarees to attract 5% GST - CBEC
PrintListen to this Article
Clearing the air over whether sarees will be treated as garments or fabric, the Central Board of Excise and Customs (CBEC) 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.
"Therefore the sarees, whether, embroidered or not would be taxed at the same rate at which the fabric is taxed," the CBEC said in a set of frequently asked questions (FAQs).
It said 5 per cent GST is levied on job processes relating to the textile yarn (other than man-made fibre/filament) and fabrics.
With regard to dress materials, the FAQ clarified that if the sale value if not exceeding Rs 1,000 then a 5 per cent GST will be levied and in cases where it exceeds Rs 1,000, a 12 per cent GST will be charged.
As per the GST rate decided by the GST Council last month, all categories of fabric attract a 5 per cent rate.
Man-made apparel up to Rs 1,000 will attract a 5 per cent tax and those costing above Rs 1,000, will attract 12 per cent.
In regard to sale of old dhotis, the CBEC said it would be treated as "worn clothing" and will be taxed as apparel based on sale value.
"As presumably the old cotton dhoti would be below the sale value of Rs 1,000 per piece, it would be taxed at 5 per cent," the CBEC said.
With regard to new dhotis, it clarified that the tax rate will be 5 per cent.
The CBEC has also clarified that jute handbags and shopping bags would be taxed at 18 per cent under the GST, which came into effect on July 1. #casansaar (Source - PTI)
Category : GST | Comments : 0 | Hits : 554
TEST
Dear Taxpayers, 1. GSTN is pleased to inform that an enhanced version of the GST portal would be launched on 3rd May 2024. The effort is to improve user experience and ensure that the information you need is accessible and easy to navigate. 2. Key Enhancements Include (PDF with screenshots attached): i. News and Updates Section: We have introduced a dedicated tab for all news and updates. This section now includes a bet...
The Supreme Court on Friday issued notices to the central government, the Central Board of Indirect Taxes and Customs (CBIC), the Goods and Services (GST) Council and the National Anti-Profiteering Authority (its functions have been taken over by the Competition Commission of India) on a petition challenging a Delhi High Court verdict, upholding the constitutional validity of anti-profiteering provisions filed by a real estate company. The petition, filed by Swati Realty, says the high court ...
The delectable Malabar Parota will taste even better with the Kerala High Court ruling that the popular flatbread will attract GST at 5 per cent and not 18 per cent. With this the court has turned down order by the State’s Authority of Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR). Disposing a petition by Kochi-based Modern Food Enterprises, a single judge bench of Justice Dinesh Kumar Singh said if key inputs (cereals, flour, starch, etc) and preparations are s...
A businessman from Delhi was taken into custody by the Noida police for his alleged involvement in a massive Rs 15,000 crore GST fraud that was exposed last year, TOI reported. Tushar Gupta, aged 39 and residing in Tilak Nagar, was arrested as the 33rd suspect in this case. The police revealed that Gupta had exploited input tax credit (ITC) using 35 fake companies, resulting in a loss of Rs 24 crore to the exchequer over the past two years. He was reportedly part of a syndicate that utiliz...
Comments