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of <h1>Classification of Salwar/Churidar sets under specific GST rates based on stitching complexity</h1> <h3>In Re: M/s. RmKV Fabrics Private Limited</h3> In Re: M/s. RmKV Fabrics Private Limited - 2019 (23) G.S.T.L. 337 (A. A. R. - GST) Issues Involved:1. Classification of Salwar/Churidar sets under GST.2. Applicable GST rates for different models of Salwar/Churidar sets.Detailed Analysis:Issue 1: Classification of Salwar/Churidar sets under GSTThe applicant, engaged in trading readymade garments, sought an advance ruling on the classification and applicable GST rates for Salwar/Churidar sets. The sets in question include:1. Both Top and Bottom not stitched.2. Top semi-stitched and Bottom not stitched.3. Top stitched but Bottom not stitched.4. Top Neck-worked; Both Top and Bottom not stitched.The applicant argued that these sets should be classified as 'fabrics' under Chapters 50 to 55 based on the constituent material, attracting a 5% GST rate. They referenced CBIC Circulars No. 557/53/2000 and No. 13/13/2017, which state that cut pieces of fabrics remain classified as fabrics and attract a uniform GST rate of 5%.Issue 2: Applicable GST rates for different models of Salwar/Churidar setsModel 1: Both Top and Bottom not stitchedThe ruling determined that Model 1, consisting of three pieces of fabric (Top, Bottom, and Dupatta) where no stitching has been done, is classified as fabric under Chapters 50 to 55, depending on the material. The applicable GST rate is 5% (2.5% CGST + 2.5% SGST).Model 2: Top semi-stitched and Bottom not stitchedFor Model 2, where the Top is partially cut into shape but requires further cutting and stitching, it is classified as a 'made up' article under Tariff heading 621142/621143/621149, depending on the material. The applicable GST rate is 5% (2.5% CGST + 2.5% SGST) if the sale value is up to Rs. 1000 and 12% (6% CGST + 6% SGST) if the sale value exceeds Rs. 1000.Model 3: Top stitched but Bottom not stitchedModel 3, where the Top is fully stitched, is also classified as a 'made up' article under Tariff heading 621142/621143/621149, depending on the material. The applicable GST rate is 5% (2.5% CGST + 2.5% SGST) if the sale value is up to Rs. 1000 and 12% (6% CGST + 6% SGST) if the sale value exceeds Rs. 1000.Model 4: Top Neck-worked; Both Top and Bottom not stitchedModel 4, where the Top has the neck portion cut and design worked into it, is classified as a 'made up' article under Tariff heading 621142/621143/621149, depending on the material. The applicable GST rate is 5% (2.5% CGST + 2.5% SGST) if the sale value is up to Rs. 1000 and 12% (6% CGST + 6% SGST) if the sale value exceeds Rs. 1000.Ruling:1. Model 1: Classified as fabric under Chapters 50 to 55. Applicable GST rate: 5% (2.5% CGST + 2.5% SGST).2. Model 2: Classified as made up articles under Tariff heading 621142/621143/621149. Applicable GST rate: 5% (2.5% CGST + 2.5% SGST) if sale value = Rs. 1000; 12% (6% CGST + 6% SGST) if sale value > Rs. 1000.3. Model 3: Classified as made up articles under Tariff heading 621142/621143/621149. Applicable GST rate: 5% (2.5% CGST + 2.5% SGST) if sale value = Rs. 1000; 12% (6% CGST + 6% SGST) if sale value > Rs. 1000.4. Model 4: Classified as made up articles under Tariff heading 621142/621143/621149. Applicable GST rate: 5% (2.5% CGST + 2.5% SGST) if sale value = Rs. 1000; 12% (6% CGST + 6% SGST) if sale value > Rs. 1000.
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