India: GST Rates Finalised for Textiles and Apparel

The Indian GST Council has finalised the tax rates for textiles and apparel under the Goods and Services Tax (GST) regime that is rolled-out pan India from July 1.

The Council has made a distinction between various items and textiles and clothing would attract different rates. The GST Council had fixed the rates for over 1,200 goods and 500 services -- at the slabs of 5, 12, 18 and 28 per cent.

Readymade apparel priced below Rs 1,000 would attract GST at 5 per cent, while the expensive ones would be taxed at 12 per cent.

In the textiles category, no tax would be levied on silk and jute fibre. Cotton and natural fibre will be taxed at 5 five per cent. Man-made fibre and yarn will attract 18 per cent tax rate. All other fibres and yarn would have a uniform 5 per cent rate.

Footwear below Rs 500 at 5 per cent while those costing more would be taxed at 18 per cent.

Here are some highlights: 

* Packaged food items sold under registered trademarks to be taxed at 5 per cent.

* GST on apparel below Rs 1,000 fixed at 5 per cent. Readymade garments to attract 12% GST; Yarn and fabric cotton 5 per cent(Natural yarn to be taxed at 5 per cent, man-made yarn at 18 per cent)  

* 0 per cent tax on Jute 

* Footwear priced below Rs 500 to be taxed at 5%, the rest at 18%

* GST rate for gold fixed at 3 per cent 

* Gold, gems, jewellery to be taxed at 3 per cent

* GST on all biscuits to be 18%


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