TaxTMI 
TaxTMI 
Dear All,
I shall be thankful if someone could tell me the Chapter Heading and rate of GST applicable on “Rakhi” used in the “Rakshabandhan” festival.
What is the classification of "Rakhi"
18 Jul 2017 
3 Replies 
3736 Views Asked by
GST classification of rakhi: retail purchases attract the standard rate, while free gifts to recipients may be zero-rated.
Forum responses classified rakhi under an HSN classification corresponding to small manufactured articles with the standard GST rate, while an alternative view placed it as a cotton bracelet under the textile chapter. Contributors noted that purchased rakhis are taxable as supplies at the standard GST rate, whereas supplying them free to recipients was described as attracting zero-rated treatment; one reply suggested giving cash instead of goods to avoid goods taxation. (AI Summary)
Forum responses classified rakhi under an HSN classification corresponding to small manufactured articles with the standard GST rate, while an alternative view placed it as a cotton bracelet under the textile chapter. Contributors noted that purchased rakhis are taxable as supplies at the standard GST rate, whereas supplying them free to recipients was described as attracting zero-rated treatment; one reply suggested giving cash instead of goods to avoid goods taxation. (AI Summary)