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of <h1>Unstitched Salwar Suits Clarified Under GST: 5% Tax Rate with No Input Credit Refund; Chapters 50-55 Relevant.</h1> The circular clarifies the classification of unstitched salwar suits under GST. It addresses concerns about the classification of cut fabric pieces, which are sold unstitched for consumers to tailor. These fabrics, classified under chapters 50 to 55 of the Customs Tariff Act, 1975, are subject to a 5% GST rate, with no refund for unutilized input tax credit. Cutting and packing these fabrics into different lengths do not alter their classification or GST rate. Authorities are requested to issue trade notices to disseminate this information, and any implementation difficulties should be reported to the Board.
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