Chapter 54 - Man-made filaments; strip and the like of man-made textile materials

Notes

Throughout this Schedule, the term 'man made fibres' means staple fibres and filaments of organic polymers produced by manufacturing processes either:
1. by polymerisation of organic monomers to produce polymers such as polyamides, polyesters, polyolefins or polyurethanes, or by chemical modification of polymers produced by this process (for example, poly(vinylalcohol)prepared by the hydrolysis of poly (vinyl acetate)); or
2. by dissolution or chemical treatment of natural organic polymers (for example, cellulose) to produce polymers such as cuprammonium rayon (cupro) or viscose rayon, or by chemical modification of natural organic polymers (for example, cellulose, casein and other proteins, or alginic acid), to produce polymers such as cellulose acetate or alginates.
2. Headings 5402 and 5403 do not apply to synthetic or artificial filament tow of Chapter 55.

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
5401<sup>1</sup>	Sewing thread of manmade filaments, whether or not put up for retail sale	5%	I	158
5402	All synthetic filament yarn such as nylon, polyester, acrylic, etc.	18%	III	159
5403	Synthetic or artificial filament yarns	5%	I	132B<sup>3</sup>
5404	All synthetic filament yarn such as nylon, polyester, acrylic, etc.	18%	III	159
5405<sup>2</sup>	All synthetic filament yarn such as nylon, polyester, acrylic, etc.	18%	III	159
5406	Synthetic or artificial filament yarns	12%	II	132B<sup>3</sup>
5407	Woven fabrics of manmade textile materials	5%	I	217
5408	Woven fabrics of manmade textile materials	5%	I	217
5401<sup>1</sup>	Sewing thread of manmade filaments, whether or not put up for retail sale	12%	II	132A
5402	All goods other than synthetic filament yarns	18%	III	159
5402	Synthetic or artificial filament yarns	12%	II	132B<sup>3</sup>
5403	All artificial filament yarn such as viscose rayon, Cuprammonium,etc.	18%	III	160
5403	All goods other than artificial filament yarns	18%	III	160
5404	All goods other than synthetic filament yarns	18%	III	159
5404	Synthetic or artificial filament yarns	12%	II	132B<sup>3</sup>
5405<sup>2</sup>	All goods other than synthetic filament yarns	18%	III	159
5405	Synthetic or artificial filament yarns	12%	II	132B<sup>3</sup>
5405	All artificial filament yarn such as viscose rayon, Cuprammonium,etc.	18%	III	160
5405	All goods other than artificial filament yarns	18%	III	160
5406<sup>4</sup>	All artificial filament yarn such as viscose rayon, Cuprammonium,etc.	18%	III	160
5406<sup>4</sup>	All goods other than artificial filament yarns	18%	III	160
50	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified	0%	-	130A<sup>5</sup>
51	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified	0%	-	130A<sup>5</sup>
52	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified	0%	-	130A<sup>5</sup>
53	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified	0%	-	130A<sup>5</sup>
54	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified	0%	-	130A<sup>5</sup>
55	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified	0%	-	130A<sup>5</sup>

Other Exemptions

Description	Notification
Exemption from Registration - Small Taxpayers having turnover below threshold limit	Notification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old Scheme	Notification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New Scheme	Notification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST 0 6% - For Taxpayers having turnover less than Rs. 50 Lakhs and Not Eligible for Composition Scheme.	Notification No. 2/2019-C.T. (Rate), dated 7-3-2019
Exemption to Specified Goods supplied to Specified Recipients for Petroleum Exploration etc.	Notification No. 3/2017-Central Tax (Rate), dated 28-6-2017]
Exemption to Goods Supplied to CSD by way of Refund	Notification No. 6/2017-Central Tax (Rate), New Delhi, dated 28-6-2017.
Exemption to goods supplied by CSD	Notification No. 7/2017-Central Tax (Rate), New Delhi, dated 28-6-2017
United Nation, International Organisation and Foreign Diplomatic Mission Notified as Entitled for refund of GST Paid on supplies received.	Notification No. 16/2017-Central Tax (Rate), dated 28-6-2017
Reduced GST on Supply of Goods to Exporter	Notification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutions	Notification No. 45/2017-C.T. (Rate), dated 14-11-2017
Concessional GST on Specified Handicraft	Notification No. 21/2018-C.T. (Rate), dated 26-7-2018

Departmental Clarifications / Case Law

Salwar Suit

Salwar Suit - The Hon'ble Authority for Advance Ruling in In Re: RmKV Fabrics Pvt. lid. 2019 (23) G.S.T.L 337 (AARGST), ruled as under for different type of Salwar Suits.<br>o Model 1 Salwar/Chudidar sets supplied by the Applicant, Both Top and Bottom not stitched consisting of three pieces of fabrics (Top/Bottorn/Dupatta) where no stitching has been done and thepieces are merely cut into fabrics from bales/than, is classifiable as fabric Chapter 50 to 55 depending on the material.<br>o Model 2 Salwar/Chudidar sets supplied by the Applicant, Top semi-stitched and bottom not stitched consisting of bottom and dupatta fabrics cut from bales/than and the Top has already been partially cut into shape but requires further cutting and stitching to size, is classifiable as made up articles under Tariff Heading 6211 42/6211 43/6211 49 depending on the material.<br>o Model 3 Salwar/Chudidar sets supplied by the Applicant, Top stitched but bottom not stitched consisting bottom and dupatta fabrics cut from bales/than and the Top fully stitched is classifiable as made up articles under Tariff Heading 6211 42/6211 43/6211 49 depending on the material.<br>o Model 4 Salwar/Chudidar sets supplied by the Applicant, Top Neck-worked. Both Top and Bottom not stitched consisting of bottom and dupatta fabrics cut from bales/than and the Top has neck portion cut and 42/6211 43/6211 49

Sarees and Dhoti

Sarees are classifiable under different headings depending on their constituents and attract GST rate as under:<br><table class='table table-bordered'> <tr> <th>Constituent fibre</th> <th>Description</th> <th>HS Code</th> <th>GST Rate</th> </tr><tr> <td>Silk</td><td>Woven fabrics of silk - sarees</td><td>5007</td><td>5%</td></tr><tr> <td>Cotton</td><td>Of not more than 200 gsm</td><td>5208</td><td>5%</td></tr><tr> <td>Cotton</td><td>Of more than 200 gsm</td><td>5209</td><td>5%</td></tr><tr> <td>Man-made filaments yarn</td><td>Of any gsm</td><td>5407</td><td>5%</td></tr><tr> <td>Man-made filaments yarn</td><td>Of any gsm</td><td>5408</td><td>5%</td></tr></table></br>(a) The GST rate on all sarees of silk, cotton or man-made fabrics [whether or not with embroidery or chikan work] is 5%.<br>(b) However, GST rate on sarees woven of metal thread or metallized yarn under HS code 5809 is 12%.<br> C.B.L & C Circular F. No. 332/2/2017-TRU, dated 7-12-2017

Manmade fishnet twine

Manmade fishnet twine - As per the HSN Explanatory Notes, goods of man-made fibres (including those yarns of two or more monofilaments of Chapter 54) measuring 10,000 decitex or less are classifiable under Chapter 54 or 55 as yarn. Prior to 13-10-2017, yarn falling under these attracted 18% GST. With effect from 13-10-2017, the rate on these has been reduced to 12%. Goods of manmade fibres (including those yarns of two or more monofilaments of Chapter 54) measuring more than 10,000 decitex are classifiable under heading 5607 as twine and attract 5% GST. C.B.I. & C. Circular F. No. 332/2/2017-TRU, dated 7-12-2017

Fabrics with embroidery or chikan work

Fabrics with embroidery or chikan work - Fabrics with embroidery or chikan work fall under Chapters 50 to 55 and attract 5% GST. C.B.I. & C. Circular F. No. 332/2/2017-TRU, dated 7-12-2017