Clarification on Unstitched Salwar Suits – GST Circular

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Clarification on Unstitched Salwar Suits – GST Circular

The following GST Circular No.13/13/2017-GST was issued on 27/10/2017 to clarify the GST rate on unstitched Salwar Suits. Through this GST Circular, the GST Department has clarified that the GST rate for unstitched salwar suits would be 5%. Also, cutting and packing of fabrics into pieces of different lengths will not change the nature of goods and the fabric would continue to attract 5% GST rate.

Circular No.13/13/2017-GST

F. No. 354/129/2017-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax research Unit

North Block, New Delhi
27th October 2017


The Principal Chief Commissioners/Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All)


Subject: Clarification on Unstitched Salwar Suits – regarding.

After the release of the classification, many individuals raised clarifications regarding the classification of Cut pieces of Fabrics under GST.

  • The individuals stated that before becoming ready-made articles or apparel, the fabric is cut from bundles or thans and sold in that unstitched state. The consumers buy these sets or pieces and get it stitched to their shape and size.
  • Fabrics are classifiable under chapters 50 to 55 of the First Schedule to the Customs Tariff Act, 1975 on the basis of their constituent materials and attract a uniform GST rate of 5% with no refund of the unutilized input tax credit.
  • Mere cutting and packing of fabrics into pieces of different lengths from bundles or thans, will not change the nature of these goods and such pieces of fabrics would continue to be classifiable under the respective heading as the fabric and attract the 5% GST rate.
  • Requested that suitable trade notices can issue publicize the contents of this circular.
  • Difficulty if any, in the implementation of the circular should be brought to the notice of the Board. Hindi version would follow.


Yours faithfully,

Rahil Gupta

Technical Officer (TRU)

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