Categories: GST Case LawRajasthan AAR

KHADI READYMADE GARMENTS TAXABLE UNDER GST: RAJASTHAN AAR

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title- M/s Udyog Mandir

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAR/2019-20/01

Date of Judgment/Order- 16th April 2019

IMPORTANT PARAGRAPHS

Para No. 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT

Contents

KHADI READYMADE GARMENTS TAXABLE UNDER GST: RAJASTHAN AAR RAJASTHAN AUTHORITY FOR ADVANCE RULING GOODS AND SERVICES TAX Case Title- M/s Udyog Mandir (GST AAR RAJASTHAN)Advance Ruling No. RAJ/AAR/2019-20/01 Date of Judgment/Order- 16th April 2019 IMPORTANT PARAGRAPHS RULING

Will Khadi readymade garments to be included under the entry of Khadi fabric under chapter 50 to 55 of GST classification?
If not, then what is the correct classification and rate of tax on Khadi readymade garments?

Para No. 5. FINDINGS, ANALYSIS & CUNCLUSION

(c) In view of facts, we observe that above entry includes only khadi fabrics and not readymade garments of khadi. The readymade garments of khadi does not fall under the entry 130A of Notification No. 02/2017-Central Tax (Rate) dated 28.06.2017 and hence not exempted.

RULING

Khadi readymade garments are not covered under the entry of 130A, chapter heading 50 to 55 of Notification No. 02/2017- Central Tax (Rate) dated 28.06.2017.
Khadi readymade garments will be classifiable under Chapter heading/tariff item 62, as per Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 will attract GST as follows-:
a. If the sale value of a readymade khadi garments manufactured by the applicant is less than Rs. 1000/- will attract GST @ 5% (SGST 2.5% + CGST 2.5%);
b. If the sale value of a readymade khadi garments manufactured by the applicant is more than Rs. 1000/- will attract GST @ 12% (SGST 6% + CGST 6%).

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