Embroidery

[Asked by 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%.

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 classification of embroidery: treated as goods with rates varying by article type and textile substrate.
Embroidery on textiles is treated as goods; classification and GST rates depend on the form and substrate. Embroidery pieces (HSN 5810) attract 12% GST; fabrics with embroidery fall under textile Chapters 50-55 and attract 5% GST; garments or made-up articles with embroidery fall under Chapters 61-63 and attract 5% GST below a specified per-piece value and a higher rate above it. Sarees generally attract 5% GST, except sarees woven of metal thread or metallised yarn which attract a higher rate. Job work for embroidery is permitted and the applicable HSN/SAC is determined by the type of cloth.