GST Rate Changes on Textile, Footwear, etc. To Mitigate Inverted Duty Structure

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The GST Council’s 45th meeting was held on September 17, 2021 in Lucknow under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the recommendations relating to changes in GST rates to mitigate inverted duty structure.

The CBIC vide Notification No. 14/2021- Central Tax (Rate) dated November 18, 2021 amended Notification No. 1/2017- Central Tax (Rate) dated June 28, 2017 w.e.f. January 1, 2022 as under:

1. Omitted following entries:
Schedule I- 2.5%
S. No.HeadingDescription
203.5007Woven fabrics of silk or of silk waste
204.5104Garneted stock of wool or of fine or coarse animal hair, shoddy wool
207.5111 to 5113Woven fabrics of wool or of animal hair
211.5208 to 5212Woven fabrics of cotton
216.5309 to 5311Woven fabrics of other vegetable textile fibres, paper yarn
217.5407, 5408Woven fabrics of manmade textile materials
218.5512 to 5516Woven fabrics of manmade staple fibres
218B5607Jute twine, coir cordage or ropes
218C5608Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials
219A5801all goods
219AA5806Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs)
219B5808Saree fall
220.5809, 5810Embroidery or zari articles, that is to say,- imi, zari, kasab, salma, dabka, chumki, gota, sitara, naqsi, kora, glass beads, badla, gizai
221.60Knitted or crocheted fabrics All goods
222.61 or 6501 or 6505Article of apparel and clothing accessories or cap/topi, knitted or crocheted, of sale value not exceeding ₹ 1000 per piece
223.62Articles of apparel and clothing accessories, not knitted or crocheted, of sale value not exceeding ₹ 1000 per piece
224.63 [other than 6305 32 00, 6305 33 00, 6309]Other made up textile articles, sets, of sale value not exceeding ₹ 1000 per piece
224A6309 or 6310Worn clothing and other worn articles; rags
225.64Footwear of sale value not exceeding ₹ 1000 per pair
Schedule II- 6%
S. No.HeadingDescription
132A5401Sewing thread of manmade filaments, whether or not put up for retail sale
132B5402, 5403, 5404,5405,5406Synthetic or artificial filament yarns
132C5508Sewing thread of manmade staple fibres
132D5509, 5510, 5511Yarn of manmade staple fibres.
171.63 [other than 6309]Other made up textile articles, sets of sale value exceeding ₹ 1000 per piece [other than Worn clothing and other worn articles; rags]
Schedule III- 9%
S. No.HeadingDescription
159.5402, 5404, 5406All goods other than synthetic filament yarns
160.5403, 5405, 5406All goods other than artificial filament yarns.
161.5501, 5502Synthetic or artificial filament tow
162.5503, 5504, 5506, 5507Synthetic or artificial staple fibres
163.5505Waste of manmade fibres
2. Inserted following entries:
Schedule II- 6%
S. No.HeadingDescription
132AA5007Woven fabrics of silk or of silk waste.
132AB5111Woven fabrics of carded wool or of carded fine animal hair.
132AC5112Woven fabrics of combed wool or of combed fine animal hair.
132AD5113Woven fabrics of coarse animal hair or of horse hair.
132AE5208Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing not more than 200g/m2.
132AF5209Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200g/m2.
132AG5210Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing not more than 200g/m2.
132AH5211Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200g/m2.
132AI5212Other woven fabrics of cotton.
132AJ5309Woven fabrics of flax.
132AK5310Woven fabrics of jute or of other textile bast fibres of heading 5303.
132AL5311Woven fabrics of other vegetable textile fibres; woven fabrics of paper yarn.;
132BA5401Sewing thread of man-made filaments, whether or not put up for retail sale.
132BB5402Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex.
132BC5403Artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 decitex.
132BD5404Synthetic monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1 mm; strip and the like (for example, artificial straw) of synthetic textile materials of an apparent width not exceeding 5 mm.
132BE5405Artificial monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1 mm; strip and the like (for example, artificial straw) of artificial textile materials of an apparent width not exceeding 5 mm.
132BF5406Man-made filament yarn (other than sewing thread), put up for retail sale.
 132BG5407Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404.
132BH5408Woven fabrics of artificial filament yarn, including woven fabrics obtained from materials of heading 5405.;
132CA5501Synthetic filament tow.
132CB5502Artificial filament tow
132CC5503Synthetic staple fibres, not carded, combed or otherwise processed for spinning.
132CD5504Artificial staple fibres, not carded, combed or otherwise processed for spinning.
132CE5505Waste (including noils, yarn waste and garnetted stock) of man-made fibres.
132CF5506Synthetic staple fibres, carded, combed or otherwise processed for spinning.
132CG5507Artificial staple fibres, carded, combed or otherwise processed for spinning.
132CH5508Sewing thread of man-made staple fibres, whether or not put up for retail sale.
132CI5509Yarn (other than sewing thread) of synthetic staple fibres, not put up for retail sale.
132CJ5510Yarn (other than sewing thread) of artificial staple fibres, not put up for retail sale.
132CK5511Yarn (other than sewing thread) of man-made staple fibres, put up for retail sale.
132CL5512Woven fabrics of synthetic staple fibres, containing 85% or more by weight of synthetic staple fibres.
132CM5513Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight not exceeding 170 g/m2.
132CN5514Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight exceeding 170 g/m2.
132CO5515Other woven fabrics of synthetic staple fibres.
132CP5516Woven fabrics of artificial staple fibres.;
139A5608Knotted netting of twine, cordage or rope; made up of fishing nets and other made up nets, of textile materials.;
146A5801Woven pile fabrics and chenille fabrics, other than fabrics of heading 5802 or 5806.;
151A5806Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs).;
168A6001Pile fabrics, including ―long pile‖ fabrics and terry fabrics, knitted or crocheted.
168B6002Knitted or crocheted fabrics of a width not exceeding 30 cm, containing by weight 5% or more of elastomeric yarn or rubber thread, other than those of heading 6001.
168C6003Knitted or crocheted fabrics of a width not exceeding 30 cm, other than those of heading 6001 or 6002.
168D6004Knitted or crocheted fabrics of a width exceeding 30 cm, containing by weight 5% or more of elastomeric yarn or rubber thread, other than those of heading 6001.
168E6005Warp knit fabrics (including those made on galloon knitting machines), other than those of headings 6001 to 6004.
168F6006Other knitted or crocheted fabrics.;
171A16301Blankets and travelling rugs.
171A26302Bed linen, table linen, toilet linen and kitchen linen.
171A36303Curtains (including drapes) and interior blinds; curtain or bed valances.
171A46304Other furnishing articles, excluding those of heading 9404.
171A56305Sacks and bags, of a kind used for the packing of goods.
171A66306Tarpaulins, awnings and sunblinds; tents; sails for boats, sailboards
or landcraft; camping goods.
171A76307Other made up articles, including dress patterns.
171A86308Sets, consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidered table cloths or serviettes, or similar textile articles, put up in packings for retail sale.
171A96309Worn clothing and other worn articles.
171A106310Used or new rags, scrap, twine, cordage, rope and cables and worn out articles of twine, cordage, rope or cables, of textile materials.
171A1164Footwear of sale value not exceeding Rs.1000 per pair.
3. Substituted following entries:
Schedule II- 6%
S. No.HeadingDescription (Old)Description (Substituted)
139.5607Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics other than jute twine, coir cordage or ropesTwine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated or sheathed with rubber or plastics
154.5808Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles other than saree fallBraids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles
155.5809Woven fabrics of metal thread and woven fabrics of metallised yarn of heading 5605, of a kind used in apparel, as furnishing fabrics or for similar purposes, not elsewhere specified or included; such as Zari borders [other than Embroidery or zari articles, that is to say,- imi, zari, kasab, saima, dabka, chumki, gota sitara, naqsi, kora, glass beads, badla, glzalWoven fabrics of metal thread and woven fabrics of metallised yarn of heading 5605, of a kind used in apparel, as furnishing fabrics or for similar purposes, not elsewhere specified or included
156.5810Embroidery in the piece, in strips or in motifs, Embroidered badges, motifs and the like [other than Embroidery or zari articles, that is to say,- imi, zari, kasab, saima, dabka, chumki, gota sitara, naqsi, kora, glass beads, badla, glzalEmbroidery in the piece, in strips or in motifs
168.5911Textile products and articles, for technical uses, specified in Note 7 to this Chapter; such as Textile fabrics, felt and felt-lined woven fabrics, coated, covered or laminated with rubber, leather or other material, of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams); Bolting cloth, whether or Not made up; Felt for cotton textile industries, woven; Woven textiles felt, whether or not impregnated or coated, of a kind commonly used in other machines, Cotton fabrics and articles used in machinery and plant, Jute fabrics and articles used in machinery or plant, Textile fabrics of metalised yarn of a kind commonly used in paper making or other machinery, Straining cloth of a kind used in oil presses or the like, including that of human hair, Paper maker’s felt, woven, Gaskets, washers, polishing discs and other machinery parts of textile articlesTextile products and articles, for technical uses, specified in Note 7 to  Chapter 59 ; such as Textile fabrics, felt and felt-lined woven fabrics, coated, covered or laminated with rubber, leather or other material, of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams); Bolting cloth, whether or Not made up; Felt for cotton textile industries, woven; Woven textiles felt, whether or not impregnated or coated, of a kind commonly used in other machines, Cotton fabrics and articles used in machinery and plant, Jute fabrics and articles used in machinery or plant, Textile fabrics of metalised yarn of a kind commonly used in paper making or other machinery, Straining cloth of a kind used in oil presses or the like, including that of human hair, Paper maker’s felt, woven, Gaskets, washers, polishing discs and other machinery parts of textile articles

Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).

 

 


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