Chapter 55 - Man-made staple fibres

Notes

Headings 5501 and 5502 apply only to man-made filament tow, consisting of parallel filaments of a uniform length equal to the length of the tow, meeting the following specifications:

length of tow exceeding 2 m;
twist less than 5 turns per metre;
measuring per filament less than 67 decitex;
synthetic filament tow only: the tow must be drawn, that is to say, be incapable of being stretched by more than 100% of its length;
total measurement of tow more than 20,000 decitex.
Tow of a length not exceeding 2 m is to be classified in heading 5503 or 5504.

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
5501	Synthetic or artificial filament tow	5%	I	161
5502	Synthetic or artificial filament tow	5%	I	161
5503	Synthetic or artificial staple fibres	5%	I	162
5504	Synthetic or artificial staple fibres	5%	I	162
5505	Waste of manmade fibres	18%	III	163
5506	Synthetic or artificial staple fibres	18%	III	162
5507	Synthetic or artificial staple fibres	18%	III	162
5508	Sewing thread of mapniade staple fibres	18%	III	164
5509	Yarn of manmade staple fibres	18%	III	165
5510	Yarn of manmade staple fibres	18%	III	165
5511	Yarn of manmade staple fibres	18%	III	165
5512	Woven fabrics of manmade staple fibres	5%	I	218
5513	Woven fabrics of manmade staple fibres	5%	I	218
5514	Woven fabrics of manmade staple fibres	5%	I	218
5515	Woven fabrics of manmade staple fibres	5%	I	218
5516	Woven fabrics of manmade staple fibres	5%	I	218
5508	Sewing thread of mapniade staple fibres	12%	II	132C
5509	Yarn of manmade staple fibres	12%	II	132D
5510	Yarn of manmade staple fibres	12%	II	132D
5511	Yarn of manmade staple fibres	12%	II	132D
50	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified institutions/outlets	0%	-	130a<sup>1</sup>
51	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified institutions/outlets	0%	-	130a<sup>1</sup>
52	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified institutions/outlets	0%	-	130a<sup>1</sup>
53	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified institutions/outlets	0%	-	130a<sup>1</sup>
54	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified institutions/outlets	0%	-	130a<sup>1</sup>
55	Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified institutions/outlets	0%	-	130a<sup>1</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 @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

Departmental Clarifications / Case Law

Salwar Suit

The Hon'ble Authority for Advance Ruling in In Re: RmKV Fabrics Pvt. Ltd. 2019 (23) G.S.T.L. 337 (AAR-GST), ruled as under for different type of Salwar Suits.

Model 1 Salwar/Chudidar sets supplied by the Applicant, Both Top and Bottom not stitched consisting of three pieces of fabrics (Top/Bottom/Dupatta) where no stitching has been done and the pieces are merely cut into fabrics from bales/than, is classifiable as fabric Chapter 50 to 55 depending on the material. <br>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> Model 3 Salwar/Chudidar sets supplied by the Applicant, Top stitched but bottom not stitched consisting of 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> 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 design worked into it is classifiable as made up articles under Tariff Heading 6211 42/6211 43/6211 49 depending on the material.

Fabric 1.2 MT cut for pant and 2.5 MT cut for a shirt

Specified fabrics attract 5% GST, whether or not in form of cut pieces. C.B.I. & C. Circular F. No. 332/2/2017-TRU, dated 7-12-2017