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AAR held that the applicant's supply of imitation zari thread or yarn (metallic yarn/zari badla) manufactured from metallized polyester film/plastic film is classifiable under HSN 56050020. Applying N/N 1/2017-CT (Rate), as amended by N/N 9/2023-CT (Rate), read with relevant GST Council minutes and clarificatory circulars, AAR ruled that such goods fall under Serial No. 218AA and attract GST at 5%. Further, post-supersession of N/N 1/2017 by N/N 9/2025-CT (Rate) with effect from 22.09.2025, the same goods fall under Serial No. 353 of Schedule I, continuing to be liable to GST at 5%.
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