Skip to main content

GST RATE CHANGES ON CLOTH, APPAREL, FABRIC, FOOTWEAR & MAN MADE FIBRE FROM 5% TO 12%

According to Notification by Ministry of Finance Under GST Act there will be changes of rates on CLOTH, APPAREL, FABRIC, FOOTWEAR & MAN MADE FIBER w.e.f. 01/01/2022 as notified in circular vide Notification No. 14/2021-IGST & Notification No. 14/2021-CGST Dated-18th November, 2021.

The below mentioned amendments have been postponed by the Government by a new press release on 31st December 2021 in 46th meeting of GST council. 
Changes in GST Rates of Woven Fibers which comes under sec 203,207,211,216-218,218A,218C,219A,219B,220,221-224,224A and 225

Previously the Rates on Woven Fibers and fabric cloth were likewise

Apparels of MRP or Retail price Up to ₹ 1000 - GST - 5%
Apparels of MRP or Retail price Above ₹ 1000 - GST - 12%

Current Rates Applicable W.E.F. 01/01/2022 will be likewise

All Apparels, Fabrics, Woven Fibers, blankets, linen, bags and any other made of cloth fabric etc. starting from MRP ₹ 1 - will be charged at a uniform GST - 12%

Rate 5% has been abolished and removed from clothes and now From 01/01/2022 every goods comprising of apparels will be levied with a tax rate of Flat 12% irrespective of the MRP slab and value.

There are no exceptions or exemptions of goods in category of clothes for Tax rate and every type of cloth goods is attracting a GST rate of 12%. (CGST-6% & SGST-6%)
(IGST-12%)

Detail analysis section wise details of different materials are given in below provided pdf in the link.

For consumer or customers who are byuing the products on MRP has not to pay any extra amount on MRP as the the new MRP (with increased tax amount) will be applicable on all products including the 12% GST rates. The customers dont have to pay and extra on MRP but the MRP itself will get increased and ultimately the consumer will have to bear a high tax rate and the clothes and apparels are going to be very expensive From 01/01/2022 as the rate has straight away jumped by 7%.


The Cloth will be Expensive no doubt but only the small products and products of less value will be more expensive as we all know that there will be no changes on the MRP or rate above ₹1000. The products of MRP more then ₹1000 will have a slighter fluctuations as raw materials used in processing will attract now a charge of 12% as compare to 5% but overall the goods up to ₹1000 will only be costlier and rest there will be no such jump in the rates of Woven Fibers and Apparels.

Changes in GST Rates of Footwear which comes under Sec and Chapter 64

Previously the Rates on Footwear were likewise

Footwear of MRP or Retail price Up to ₹ 1000 - GST - 5%
Footwear of MRP or Retail price Above ₹ 1000 - GST - 18%

Current Rates Applicable W.E.F. 01/01/2022 will be likewise

Footwear of MRP or Retail price Up to ₹ 1000 - GST - 12%
Footwear of MRP or Retail price Above ₹ 1000 - GST - 18%

Footwear which comes under Sec 64 and the value of footwear whose value does not exceed ₹1000 will attract a GST of 12% and any other Footwear other than chapter 64 will attract a GST rate of 18% as before.

Segregated details of Footwear chapter and section wise are given in the below link.


The Footwear given in the above link which is showing 5% is now Jumped to 12%.






Comments

Post a Comment

IF YOU HAVE ANY DOUBTS REGARDING GST RETURNS OR ACCOUNTS RECONCILLATION YOU CAN CONTACT FOR FREE AT [email protected]

Popular posts from this blog

GSTR 3B VS GSTR 1 & ITC COMPARISON SHEET

Outward Supply and ITC Comparison Sheet is a sheet that shows the difference of outward supplies filed in GSTR 1 VS GSTR 3B and the difference between your claimed ITC in GSTR 3B vs ITC in GSTR 2B. Usually the ITC Comparison sheet was visible in the Return Dashboard next to GSTR 2A, but after introduction of GSTR 2B the ITC Comparison sheet is no longer can be accessed from return dashboard. Here are the Steps from where you can access the ITC Comparison sheet easily. Go to www.gst.gov.in Login with your credentials. Click on Services next to Dashboard on the top bar Click on Returns next to ledgers from the drop down menu In the drop down menu right hand side you can see Tax liabilities & ITC comparison sheet. Below is the image for better understanding. Then select Financial year for which you want to download the comparison sheet and click on search Then your comparison sheet will get open and will be visible as shown below in the image. You can also Download Excel file
Post a Comment
Read more

New GST Rates amid 12th July 50th GST council Meeting

GGST rates Increased or Decreased The 50th GST council meeting that took place on 12th July Tuesday has the below outcomes: ITEMS/PARTICULARS/PRODUCTS/SERVICES CURRENT GST RATES ( OLD RATES) MODIFIED   GST RATES ( NEW RATES) Quarziba Medicine 12% NIL ( Not Taxable) FSMP (Medicines & Food for special Medical Purposes. 12% NIL ( Not Taxable) Imitation (Copying/duplicity) of Zari Thread 12% 5% LD slag 18% 5% Uncooked/Unfried snack pellets 18% 5% Fish Soluble paste 18% 5% Private Satellite Launch Service 18% NIL ( Not Taxable) Food and beverages when sold with Cinema Ticket. 18% 5% Gaming /Horse Racing / Casino 18% 28% Cess on Utility Vehicles (If certain Paramete
Post a Comment
Read more

Types of GST REGISTRATION

There are 7 types of Registration Under GST or we can say that A Tax payer can get registered by 7 ways under GST Portal or GST Regime. Normal Taxpayer Visit -  https://www.gst-return-filling.com/2023/03/gst-registration-essential-documents.html Tax Deductor at Source (TDS) Tax Collector at source (TCS) Non resident Taxable person Non resident Online Service Provider GST Practitioner UN Bodies, Embassies or Other Notified Person
2 comments
Read more