Excise Duty on Garments

[Rohit Jain]

Dear All,

We are a Garment Manufacturing unit producing readymade garments on contract for certain international brand. Our Brand Owner shares the price labels to be affixed with garments. Price tags are in foreign currency, normally in dollar and it ranges from $15 to $35. Hence, in such a case whether we are exempt from Excise Duty or whether we have to discharge excise duty by converting foreign currency price into INR?

Please suggest.

AI Summary

Garment Manufacturer Must Pay GST on Domestic Sales; Eligible for Rebate Post-Export with Disclaimer Certificate A garment manufacturing unit producing readymade garments for an international brand inquired about excise duty obligations when price tags are in foreign currency. They clarified that they sell domestically to an Indian unit, which then exports the garments. One response advised that since the garments are not directly exported by the manufacturer, they must pay GST on the transactional value at the time of supply to the Indian unit. After the unit exports the garments, the manufacturer can claim a rebate upon obtaining a disclaimer certificate from the Indian unit.