Embroidery

[Guest]

He'll sir,

I am proprietary of zari embroidery. I am confused regarding gst applicable to business and I am purchase cloth and embroidery on it with different materials like chemkki , zari articles, baids etc, whether if client will provide cloth it will treat as goods or services and what rate, HSN OR SAC

[KASTURI SETHI]

Here is an extract of FAQ dated 28.9.17. You may see the relevant HSN of your product for latest rate of tax in GST tariff. There are changes in rate of tax depending upon the item you manufacture/supply. Your item is manufactured

20	What is the HS code and GST rate on : (a) embroidery or chikan work in strips, piece or motifs; (b) fabrics with embroidery or chikan work; (c) garments or made up articles of textiles with embroidery or chikan work?	(1) The HS code of embroidery including chikan work in strips, piece or motifs is 5810 and attracts 12% GST. (2) Fabrics with embroidery or chikan work fall under Chapters 50 to 55 and attract 5% GST. (3) Garments or made up articles of textiles with embroidery or chikan work fall under Chapters 61 to 63. Such articles with sale value not exceeding ₹ 1000 per piece attract 5% GST and with sale value exceeding ₹ 1000 per piece attract 12% GST.
21	What will be the GST rate on embroidered sarees, sarees with chikan work, banarasi sarees and other sarees?	1 The GST rate on all sarees of silk, cotton or man-made fabrics [whether or not with embroidery or chikan work] is 5%. 2 However, GST rate on sarees woven of metal thread or metallised yarn under HS code 5809 is 12%.

[Guest]

Sir,

Can you clarify me whether Embroidery work will come under Goods or Services and also I have question about whether it will cover under job work. Give me applicable HSN or SAC

[KASTURI SETHI]

It is goods as already replied. Job work can be got done. Exact HSN depends on the type of textile on which embroidery work is to be done i.e. whether it is cotton, man-made etc.

If you want further clarification, describe the type of cloth.

[DR.MARIAPPAN GOVINDARAJAN]

Sethi Sir correctly cited the FAQ for the answer to the query. Well done sir.

[KASTURI SETHI]

Sir,

A lot of thanks.

AI Summary

GST Clarified for Zari Embroidery: Goods Categorization and Rates Explained, Including HS Code 5810 and Job Work Details. A business owner sought clarity on the Goods and Services Tax (GST) applicable to zari embroidery, particularly when clients provide the cloth. The discussion involved determining whether the work is categorized as goods or services and identifying the correct Harmonized System of Nomenclature (HSN) or Service Accounting Code (SAC). Responses clarified that embroidery is considered goods, with specific GST rates depending on the textile type. For instance, embroidery on strips or motifs falls under HS code 5810 with a 12% GST, while fabrics with embroidery attract 5% GST. Further clarification was offered on job work and textile types.