New GST rates on textile likely from January 1, 2022

 

Despite concerns expressed by the industry, the government is unlikely to defer implementation of higher Goods and Services Tax (GST) on certain textile products, as the decision was taken by the GST Council.

The new GST rates will kick in from January 1, 2022.

The sector had opposed the increase citing higher compliance costs, especially for the unorganised sector and micro, small and medium enterprises (MSMEs), besides making clothing more expensive for the poor.

The finance ministry is expected to take up with the GST Council the concerns raised by the industry over the latter's decision to increase the rates on several textile products to 12%.

The Council had in its previous meeting held in Lucknow on September 17, 2020 decided to correct the inverted duty structure on footwear and textiles. After this, the GST on footwear and textiles was raised to 12%, effective January 1, 2022.

"The decision to implement from January 1, 2022 was taken by the Council after intense deliberations. We will place the representations before the Council whenever it meets next," an official said.

Since the GST was raised by the Council, any decision on the rates or implementation also lay with it, the official added.

Once it kicks in, an apparel will attract 12% GST as against 5% on sale value of up to Rs 1,000 per piece currently. Similarly, the 5% tax on sale value of up to Rs 1,000 per pair of footwear has been increased to 12%.

GST on woven fabric, sewing thread of man-made filaments, synthetic filament yarn other than sewing thread, synthetic monofilament, and artificial filament yarn including artificial monofilament, among others, have also been increased to 12% from 5% earlier. "Inverted duty structure broadly harms the sector as companies are unable to take credit of higher tax paid on inputs. It had to be corrected to help the industry," the official said.

The government has said that uniform GST will aid in the resolution of input tax credit residues that got accumulated due to the inverted tax structure earlier.

It will enable the industry to encash piled-up input tax credit progressively, the textiles ministry said last month.

The Confederation of All India Traders said that any hike in GST rates on textiles will adversely affect consumers and block capital for small traders.

Sources said the textiles ministry had not taken up the issue with the finance ministry or the GST Council Secretariat yet.

"Industry has made a representation to the finance ministry and taken up the issues with them," said another official.

Source from: https://economictimes.indiatimes.com/small-biz/gst/new-gst-rates-on-textile-likely-from-january/articleshow/88466734.cms?from=mdr

Indian FM rejects textiles ministry proposal to defer GST hike

 

India’s finance minister Nirmala Sitharaman at a meeting on December 24, 2021 rejected the proposal put forward by the ministry of textiles to defer the increase in Goods and Services Tax (GST) from the current 5 per cent to 12 per cent on fabrics and other textile products. A similar request from the Confederation of All India Traders (CAIT) was also rejected.

As a result, GST rates will go up as scheduled with effect from January 1, 2022, from 5 per cent to 12 per cent on all types of fabrics, and on garments with retail value below ₹1,000. The GST rate on man-made fibre, however, will come down from 18 per cent to 12 per cent. The rates on cotton, cotton yarn and synthetic yarn will remain unchanged at 5 per cent, 5 per cent, and 12 per cent respectively.

The GST Council at its last meeting had decided to change the GST rate to address the inverted tax structure in the MMF textile value chain. The GST of 18 per cent, 12 per cent and 5 per cent levied on MMF, MMF yarn and MMF fabrics created build-up of credits and cascading costs, as the tax on inputs was at higher rates than finished products. This further led to accumulation of taxes at various stages of MMF value chain and blockage of crucial working capital for the industry.

“Though there is a provision in the GST law to claim unutilised Input Tax Credit (ITC) as a refund, there were other complications and it resulted in more compliance burden. The inverted tax structure caused effective increase in rate of taxation of the sector. The world textiles trade has been moving towards MMF, but India was not able to take advantage of the trend as its MMF segment was throttled by inverted tax regime,” the ministry of textiles had said while announcing the change in GST structure last month.

“The uniform rate of 12 per cent is likely to contribute positively to the growth of the sector by helping save a lot of working capital and reducing the compliance burden of the industry players. It will be helpful in resolving the ITC residues that accumulated due to the inverted tax structure earlier,” the ministry had said.

On the decision to uniformly tax all garments at 12 per cent, the ministry said that differential rates for garments create problems in compliance of tax regime. “MMF garments cannot be identified easily and cannot be taxed differently, hence there is a need for uniform rate. Uniform rate makes it simple and since there is so much high potential of value addition in garment segment, the increase in rate is likely to be absorbed in value addition. It will provide clarity to the industry and settle, once and for all, the issues caused by inverted tax structure.”

However, industry experts feel that the uniform rate will lead to smaller players being pushed into the unorganised sector, as it will make harder for the sector to keep afloat. So, few textile bodies had made representations to the textiles ministry to defer/cancel the hike in GST rate from 5 per cent to 12 per cent on fabrics, and garments costing below ₹1,000. This request now stands rejected.

Source from: https://www.fibre2fashion.com/news/textile-news/indian-fm-rejects-textiles-ministry-proposal-to-defer-gst-hike-278074-newsdetails.htm

GST not applicable on payment of notice pay and allowed ITC on canteen services

 The AAAR, Madhya Pradesh in the matter of M/S. Bharat Oman Refineries Limited [Advance Ruling No. MP/AAAR/07/2021 dated November 8, 2021] reversed the ruling of AAR which held that GST is applicable on recovery of:

• Notice pay from an employee by employer in lieu of notice period
• Telephone charges
• Group Medical Insurance Policy (“the Policy”) recovered from employees and providing
• Canteen facility to employees free of cost

Held that, the AAR had erred in concluding that such activity was leviable to GST. Further held that Input Tax Credit (“ITC”) shall be available on obligatory canteen services provided by the employer to their employees.

Facts:

This appeal has been filed by M/s Bharat Oman Refineries Limited (“the Appellant” or “the Employer”) against the ruling passed by the AAR, Madhya Pradesh in M/S. Bharat Oman Refineries Limited [Advance Ruling Order No. 02/2021 dated June 7, 2021], wherein, it was held that, GST is applicable on payment of notice pay by an employee to employer in lieu of notice period and telephone charges, premium of the Policy recovered from employees and free of cost canteen facility provided to employees. Further AAR disallowed the ITC with respect to canteen services provided by the employer to their employees.

Issue:

Whether the Appellant is liable to pay GST on amount recovered in lieu of notice pay by an employee, the premium of the Policy at actuals from non-dependent parents of employees, telephone charges, and nominal charges for availing and canteen facility or free of cost canteen facility to the employees, and whether the ITC of tax paid or deemed to have been paid is admissible on such facilities provided?

Held:

The AAAR, Madhya Pradesh in Advance Ruling No. MP/AAAR/07/2021 dated November 8, 2021 held as under:

• Noted that, para 5(e) of the Schedule II of the Central Goods and Services Tax Act, 2017 (“CGST Act”) is similar to the Section 66E(e) of the Finance Act, 1994 (“the Finance Act”) applicable during Service Tax regime. In the GST era also, services provided by an employee to the employer is treated neither as supply of goods nor supply of services under Schedule III of the CGST Act.
• Relied on the judgment of the Hon’ble Madras High Court in GE T & D India Limited v. Deputy Commissioner of Central Excise [W.P. Nos. 35728 to 35734 of 2016] wherein, it was held that, no service tax is payable on notice pay recovery made by the Employer.
• Stated that, the services by an employee to the Employer in the course of or in relation to his employment have been placed out of the purview of GST. Further, the compensation which accrues to the Employer is in relation to the services provided by the employee and is related to the services not provided by him to the Employer during the course of employment i.e. the Employer is being compensated for the employee's sudden exit.
• Observed that, the Appellant is collecting amounts only in respect of Mediclaim cover in lieu of the Policy provided to the employee’s non-dependent parents and retired employees who opt for such cover. Evidently, the Appellant is not in the business of providing insurance coverage and providing such insurance cover is not a mandatory requirement under any law for the time being in force and therefore, non-providing insurance coverage to employees non-dependent parents and retired employees would not affect Appellants business by any means. Therefore, activity of recovery of cost of insurance premium at actuals cannot be treated as an activity done in the course of business or for the furtherance of business.
• Reversed the ruling passed by the AAR, Madhya Pradesh and held that:
  • Merely because the Employer is being compensated does not mean that any services have been provided by him or that he has 'tolerated' any act of the employee for premature exit.
  • Facilitating medical insurance services in lieu of the Policy to non-dependent parents and retired employees upon recovery of premium amount on actuals and telephone connection to employees upon recovery of usage charges on actuals cannot be considered as 'supply of service' under CGST Act.
  • GST is not applicable on the collection by the Appellant, of employees' portion of amount towards foodstuff supplied by the third party / Canteen Service Provider and the Appellant is providing the facility to employees, without making any profit and working as mediator and the Employer is mandated to run a canteen under the Factories Act, 1948 (“the Factories Act”). Further, canteen services provided to employees without charging any amount i.e. free of cost will also fall under Para 1 of Schedule III of CGST Act that shall be treated neither as a supply of goods nor a supply of services and therefore, not be subjected to GST.
  • ITC on GST paid towards telephone services and Policy would not be available to the Appellant in terms of Section 17(1) of the CGST Act and Section 17 (5) of the CGST Act respectively. Further, ITC in respect of canteen facility provided by the Appellant would be available as per Section 17(5)(b), as obligatory for an Employer to provide the same to its employees under the Factories Act.

Karnataka AAR ruled that 5% GST applicable on packed and branded Pushti

 

The Hon’ble Karnataka Authority for Advance Ruling (“the Karnataka AAR”) in the matter of  M/s. Devanahalli and Hosakote Taluks MSPC [Advance Ruling No. KAR ADRG 56/2021 dated October 29, 2021], ruled that Pushti is classified under HSN code 1106. If unbranded it attracts nil Goods and Services Tax (“GST”) as per S. No. 78 of Notification No. 2/2017-Central Tax (Rate) dated June 28, 2017 and if branded and packed it attracts 5% GST as per S. No. 59 of Schedule I of Notification No. 1/2017-Central Taxes (Rate) dated June 28, 2017.

Factually, the M/s. Devanahalli and Hosakote Taluks MSPC (“the Applicant”) are registered as a Society under Karnataka Societies Registration Act, 1960. The Applicant stated that as per the Integrated Child Development Services (“ICDS”) Scheme of the Government of India, Karnataka State Government has established Mahila Supplementary Production and Training Center (“MSPC”) in all the taluks of the State. MSPC supply supplementary food to Anganwadi centers through Child Development Project Office (“CDPO”) and the activities and operations of MSPC are supervised by the CDPO of the concerned Taluks. The society i.e MSPC is all women associated with the main objective of member’s welfare especially widows, women in reservation cadre, backward communities, and SC/ST. Further, the society also aims at providing high nutrition food products to beneficiaries under ICDS Scheme. The Applicant states that the Society is formed with the motive of social welfare and not monetary benefits and is into supply of Pushti which is a powdered mixture of Ragi, Rice, Wheat, Green gram, Fried gram, Moong dal, and Soya in different proportions to CDPO and CDPO, in turn applies the same to Anganwadis which is further distributed to children, pregnant women and lactating mothers.

The Applicant has sought the advance ruling on the issue in respect of classification and rate on Pushti.

The Hon’ble Karnataka AAR ruled that Pushti which is a powdered mixture of Ragi, Rice, Wheat, Green gram, Fried gram, Moong dal, and Soya in different proportions is classified under HSN code 1106. If unbranded it attracts Nil GST as per S. No. 78 of Notification No. 2/2017-Central Tax (Rate) dated June 28, 2017 and if branded and packed it attracts 5% GST as per S. No. 59 of Schedule I of Notification No. 1/2017-Central Taxes (Rate) dated June 28, 2017.

होजरी निर्माताओं ने परिधानों पर संशोधित जीएसटी दर की आलोचना की -Hosiery makers slam revised GST rate on apparel

 साउथ इंडिया होजरी मैन्युफैक्चरर्स एसोसिएशन (सिहमा) ने केंद्र से परिधान वस्तुओं पर संशोधित जीएसटी दर को वापस लेने का आग्रह किया।

केंद्रीय वित्त मंत्री को लिखे पत्र में सिहमा के सदस्यों ने कहा कि इस कदम से तैयार उत्पादों की लागत बढ़ेगी, जिसका बाद में बिक्री पर असर पड़ेगा।

जीएसटी परिषद ने अपनी पिछली बैठक में जनवरी से कई कपड़ा और परिधान वस्तुओं और जूते पर 5% से 12% तक कर बढ़ाया।

किसी भी मूल्य के बुने हुए कपड़ों पर जीएसटी दर को 1,000 रुपये तक के उत्पादों पर 5% से बढ़ाकर 12% कर दिया गया है। उद्योग के विशेषज्ञों ने कहा कि यह कार्यशील पूंजी की आवश्यकता को प्रभावित करेगा, इसके अलावा बिक्री जो कोविड संकट के बाद धीरे-धीरे बढ़ रही थी।

सिहमा के अध्यक्ष ए सी ईश्वरन ने कहा कि नया कर होजरी निर्माताओं को प्रभावित करेगा। “निम्न आय वर्ग को लाभ पहुंचाने के लिए 1,000 रुपये से कम के उत्पादों पर जीएसटी रियायत बहाल की जानी चाहिए। 500 रुपये से कम के उत्पादों पर रियायत दी जा सकती है। होजरी की एक जोड़ी की कीमत 500 रुपये हो सकती है और जीएसटी दरों में वृद्धि से लागत में और वृद्धि होगी।' "हमें उम्मीद है कि सरकार ऐसे कठिन समय में मजदूर वर्ग को और तनाव में नहीं डालेगी।"

Taxpayers can now withdraw their application for cancellation of registration before initiation of action

The Goods and Services Tax Network (GSTN) says taxpayers can now withdraw their application for cancellation of registration (filed in Form REG-16) unless the tax officer has initiated action on it. Source #GST Portal

 

Clothing manufacturers disappointed over higher GST rates on apparel

 

Clothing Manufacturers Association of India or CMAI on Friday expressed “deep disappointment" at the Centre’s notification of higher goods and services tax (GST) rates on apparel, effective January 2022.

The Central Board of Indirect Taxes and Customs (CBIC) on Thursday notified raising GST rate to 12% from 5% on fabrics, apparel from January 2022. Also, GST on apparel of any value has been increased to 12%. Earlier, GST was 5% for sale value up to ₹1,000 per piece.

The changes effected will increase prices of all fabrics and garments, the industry body said in a statement. The hike was based on the recommendations of the GST Council, according to media reports.

“CMAI, along with associations and trade bodies from all over India have been vigorously representing to the government and GST Council not to implement this change, and it is indeed extremely disappointing that the Council has chosen not to heed their plea," Rajesh Masand, president, CMAI said in the statement.

The impact of this cost increase will be pronounced as the industry is facing inflationary headwinds, with prices of raw materials, especially yarn, packing material, and freight on an upswing.

The market was expected to see a 15-20% price increase in apparel cost in the coming season even without the GST rate increase, the industry body said.

Over 80% of India’s apparel market comprises garments priced below ₹1,000, it added.

“CMAI believes this measure is completely misplaced, as it is reportedly introduced primarily to address the Inverted Duty Structure existing in a section of the Industry and this sector is not more than 15% of the total industry. To resolve a problem which exists in 15% of the Industry therefore, this move will adversely impact 85% of the total industry," said Masand.

CMAI will continue to dissuade the government as well as the GST Council to not go ahead with this change of rate.

Source from: https://www.livemint.com/news/india/clothing-manufacturers-disappointed-over-higher-gst-rates-on-apparel-11637316894013.html

Whether job work services w.r.t. dyeing or printing of textile and textile products falling under Chapter 50 to 63 taxable @ 12% or 18%

 Earlier, CBIC had issued Notification No.11/2017- Central Tax (Rate), dated June 28, 2017 (“Services Rate Notification”) w.r.t. the rates for supply of various services under Central Goods and Services Act, 2017 (“CGST Act”).

Further, CBIC vide Circular No. 126/45/2019 – GST dated November 22, 2019 clarified as under:

• There is a clear demarcation between the scope of the entries at serial no. 26(id) & serial no. 26(iv) under heading 9988 of the Services Rate Notification.
• Entry at serial no. 26 (id) covers only job work services as defined in Section 2(68) of CGST Act, 2017 i.e. services by way of treatment or processing undertaken by a person on goods belonging to another registered person.
• On the other hand, the entry at serial no 26(iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST Act.

To know more, kindly watch our old video on “When 12% GST RATES Applicable on Job Work - Manufacturing Services” by CA Bimal Jain at: https://www.youtube.com/watch?v=Qt4XoMDv0fA

Following Notification has been issued amending Services Rate Notification:

Notification:

Now, the CBIC vide Notification No. 15/2021-Central Tax (Rate) dated November 18, 2021, has further amended the Services Rate Notification, in a following manner:

• In S. No. 26 of the Services Rate Notification, related to ‘manufacturing services on physical inputs (goods) owned by others’, in item (i), in clause (b) regarding the services by way of job work in relation to textiles and textile products, after the words, “Customs Tariff Act, 1975 (51 of 1975)” the words “except services by way of dyeing or printing of the said textile and textile products” has been inserted.

Thus, Job work services w.r.t. dyeing or printing of textile and textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975) provided to registered persons shall be taxable @ 12% and to unregistered persons shall be taxable @ 18% as the scope of ‘job work’ is restricted to only those processes undertaken on goods belonging to another registered person.

The Notification will come into force with effect from January 1, 2022.

Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).

CGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-15-2021-CGST.pdf

IGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-15-2021-IGST.pdf

UTGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-15-2021-UTGST.pdf

Relevant provision:

Relevant portion of Services Rate Notification:

S. No.	Heading	Description of Service	Rate	Condition
26	Heading  9988  (Manufacturing services on physical inputs (goods) owned by others)	(i) Services by way of job work in relation to- (b) Textiles and textile products falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); except services by way of dyeing or printing of the said textile and textile products	2.5	-
		id) Services by way of job work other than (i), (ia), (ib), (ic) and (ica) above	6	-
		(iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (ica), (id), (ii), (iia) and (iii) above.	9

Composite supply of works contract to Governmental Authority or Government Entity taxable @ 18%

 

Earlier, CBIC had issued Notification No. 11/2017- Central Tax (Rate), dated the June 28, 2017 (“Services Rate Notification”) w.r.t. the rates for supply of various services under Central Goods and Services Act, 2017 (“CGST Act”).

Following Notification has been issued in respect of the same.

Notification:

Now, the CBIC vide Notification No. 15/2021-Central Tax (Rate) dated November 18, 2021, has further amended the Services Rate Notification to, in a following manner:

• In S. No. 3 of the Services Rate Notification, related to the rates for supply of construction services, the words “Union territory, a local authority, a Governmental Authority or a Government Entity” in item no. (iii), (vi), (vii), (ix) and (x), has been substituted with “Union territory or a local authority” in order to make composite supply of works contract services supplied to Governmental Authority or Government Entity taxable @ 18%
• Omitted the condition specified in item no. (iii), (vi), (vii), (ix) and (x) under S. No. 3 of the Services Rate Notification regarding the services supplied to a Government Entity.

The Notification will come into force with effect from January 1, 2022.

Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).

CGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-15-2021-CGST.pdf

IGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-15-2021-IGST.pdf

UTGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-15-2021-UTGST.pdf

Our comments:

Similar changes have been made in Serial No. 3 (i.e., pure services) and 3A (i.e., Composite supply of goods and services in which the value of supply of goods constitutes not more than 25% of the value of the said composite supply) Notification No.12/2017- Central Tax (Rate), dated the June 28, 2017 (“Services Exemption Notification”) vide Notification No. 16/2021-Central Tax (Rate) dated November 18, 2021 to exclude Governmental authority and Government Entity. Thus, services mentioned in Serial No. 3 and 3A provided to Governmental authority and Government Entity shall no longer be exempt from January 1, 2022 and shall attract GST as applicable under Services Rate Notification.

CA BIMAL JAIN

Changes in GST rate on textile, footwear, etc. to mitigate inverted duty structure

 The GST Council’s 45th meeting was held on September 17, 2021 in Lucknow under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the recommendations relating to changes in GST rates to mitigate inverted duty structure.

Following Notification has been issued in respect of the same.

Notification:

The CBIC vide Notification No. 14/2021- Central Tax (Rate) dated November 18, 2021 amended Notification No. 1/2017- Central Tax (Rate) dated June 28, 2017 w.e.f. January 1, 2022 as under:

1. Omitted following entries:

Schedule I- 2.5%

S. No.	Heading	Description
203.	5007	Woven fabrics of silk or of silk waste
204.	5104	Garneted stock of wool or of fine or coarse animal hair, shoddy wool
207.	5111 to 5113	Woven fabrics of wool or of animal hair
211.	5208 to 5212	Woven fabrics of cotton
216.	5309 to 5311	Woven fabrics of other vegetable textile fibres, paper yarn
217.	5407, 5408	Woven fabrics of manmade textile materials
218.	5512 to 5516	Woven fabrics of manmade staple fibres
218B	5607	Jute twine, coir cordage or ropes
218C	5608	Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials
219A	5801	all goods
219AA	5806	Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs)
219B	5808	Saree fall
220.	5809, 5810	Embroidery or zari articles, that is to say,- imi, zari, kasab, salma, dabka, chumki, gota, sitara, naqsi, kora, glass beads, badla, gizai
221.	60	Knitted or crocheted fabrics All goods
222.	61 or 6501 or 6505	Article of apparel and clothing accessories or cap/topi, knitted or crocheted, of sale value not exceeding ₹ 1000 per piece
223.	62	Articles of apparel and clothing accessories, not knitted or crocheted, of sale value not exceeding ₹ 1000 per piece
224.	63 [other than 6305 32 00, 6305 33 00, 6309]	Other made up textile articles, sets, of sale value not exceeding ₹ 1000 per piece
224A	6309 or 6310	Worn clothing and other worn articles; rags
225.	64	Footwear of sale value not exceeding ₹ 1000 per pair

Schedule II- 6%

S. No.	Heading	Description
132A	5401	Sewing thread of manmade filaments, whether or not put up for retail sale
132B	5402, 5403, 5404,5405,5406	Synthetic or artificial filament yarns
132C	5508	Sewing thread of manmade staple fibres
132D	5509, 5510, 5511	Yarn of manmade staple fibres.
171.	63 [other than 6309]	Other made up textile articles, sets of sale value exceeding ₹ 1000 per piece [other than Worn clothing and other worn articles; rags]

Schedule III- 9%

S. No.	Heading	Description
159.	5402, 5404, 5406	All goods other than synthetic filament yarns
160.	5403, 5405, 5406	All goods other than artificial filament yarns.
161.	5501, 5502	Synthetic or artificial filament tow
162.	5503, 5504, 5506, 5507	Synthetic or artificial staple fibres
163.	5505	Waste of manmade fibres

2. Inserted following entries:

Schedule II- 6%

S. No.	Heading	Description
132AA	5007	Woven fabrics of silk or of silk waste.
132AB	5111	Woven fabrics of carded wool or of carded fine animal hair.
132AC	5112	Woven fabrics of combed wool or of combed fine animal hair.
132AD	5113	Woven fabrics of coarse animal hair or of horse hair.
132AE	5208	Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing not more than 200g/m2.
132AF	5209	Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200g/m2.
132AG	5210	Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing not more than 200g/m2.
132AH	5211	Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing more than 200g/m2.
132AI	5212	Other woven fabrics of cotton.
132AJ	5309	Woven fabrics of flax.
132AK	5310	Woven fabrics of jute or of other textile bast fibres of heading 5303.
132AL	5311	Woven fabrics of other vegetable textile fibres; woven fabrics of paper yarn.;
132BA	5401	Sewing thread of man-made filaments, whether or not put up for retail sale.
132BB	5402	Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex.
132BC	5403	Artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 decitex.
132BD	5404	Synthetic monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1 mm; strip and the like (for example, artificial straw) of synthetic textile materials of an apparent width not exceeding 5 mm.
132BE	5405	Artificial monofilament of 67 decitex or more and of which no cross-sectional dimension exceeds 1 mm; strip and the like (for example, artificial straw) of artificial textile materials of an apparent width not exceeding 5 mm.
132BF	5406	Man-made filament yarn (other than sewing thread), put up for retail sale.
132BG	5407	Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404.
132BH	5408	Woven fabrics of artificial filament yarn, including woven fabrics obtained from materials of heading 5405.;
132CA	5501	Synthetic filament tow.
132CB	5502	Artificial filament tow
132CC	5503	Synthetic staple fibres, not carded, combed or otherwise processed for spinning.
132CD	5504	Artificial staple fibres, not carded, combed or otherwise processed for spinning.
132CE	5505	Waste (including noils, yarn waste and garnetted stock) of man-made fibres.
132CF	5506	Synthetic staple fibres, carded, combed or otherwise processed for spinning.
132CG	5507	Artificial staple fibres, carded, combed or otherwise processed for spinning.
132CH	5508	Sewing thread of man-made staple fibres, whether or not put up for retail sale.
132CI	5509	Yarn (other than sewing thread) of synthetic staple fibres, not put up for retail sale.
132CJ	5510	Yarn (other than sewing thread) of artificial staple fibres, not put up for retail sale.
132CK	5511	Yarn (other than sewing thread) of man-made staple fibres, put up for retail sale.
132CL	5512	Woven fabrics of synthetic staple fibres, containing 85% or more by weight of synthetic staple fibres.
132CM	5513	Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight not exceeding 170 g/m2.
132CN	5514	Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight exceeding 170 g/m2.
132CO	5515	Other woven fabrics of synthetic staple fibres.
132CP	5516	Woven fabrics of artificial staple fibres.;
139A	5608	Knotted netting of twine, cordage or rope; made up of fishing nets and other made up nets, of textile materials.;
146A	5801	Woven pile fabrics and chenille fabrics, other than fabrics of heading 5802 or 5806.;
151A	5806	Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs).;
168A	6001	Pile fabrics, including ―long pile‖ fabrics and terry fabrics, knitted or crocheted.
168B	6002	Knitted or crocheted fabrics of a width not exceeding 30 cm, containing by weight 5% or more of elastomeric yarn or rubber thread, other than those of heading 6001.
168C	6003	Knitted or crocheted fabrics of a width not exceeding 30 cm, other than those of heading 6001 or 6002.
168D	6004	Knitted or crocheted fabrics of a width exceeding 30 cm, containing by weight 5% or more of elastomeric yarn or rubber thread, other than those of heading 6001.
168E	6005	Warp knit fabrics (including those made on galloon knitting machines), other than those of headings 6001 to 6004.
168F	6006	Other knitted or crocheted fabrics.;
171A1	6301	Blankets and travelling rugs.
171A2	6302	Bed linen, table linen, toilet linen and kitchen linen.
171A3	6303	Curtains (including drapes) and interior blinds; curtain or bed valances.
171A4	6304	Other furnishing articles, excluding those of heading 9404.
171A5	6305	Sacks and bags, of a kind used for the packing of goods.
171A6	6306	Tarpaulins, awnings and sunblinds; tents; sails for boats, sailboards
		or landcraft; camping goods.
171A7	6307	Other made up articles, including dress patterns.
171A8	6308	Sets, consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidered table cloths or serviettes, or similar textile articles, put up in packings for retail sale.
171A9	6309	Worn clothing and other worn articles.
171A10	6310	Used or new rags, scrap, twine, cordage, rope and cables and worn out articles of twine, cordage, rope or cables, of textile materials.
171A11	64	Footwear of sale value not exceeding Rs.1000 per pair.

3. Substituted following entries:

Schedule II- 6%

S. No.	Heading	Description (Old)	Description (Substituted)
139.	5607	Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics other than jute twine, coir cordage or ropes	Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated or sheathed with rubber or plastics
154.	5808	Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles other than saree fall	Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles
155.	5809	Woven fabrics of metal thread and woven fabrics of metallised yarn of heading 5605, of a kind used in apparel, as furnishing fabrics or for similar purposes, not elsewhere specified or included; such as Zari borders [other than Embroidery or zari articles, that is to say,- imi, zari, kasab, saima, dabka, chumki, gota sitara, naqsi, kora, glass beads, badla, glzal	Woven fabrics of metal thread and woven fabrics of metallised yarn of heading 5605, of a kind used in apparel, as furnishing fabrics or for similar purposes, not elsewhere specified or included
156.	5810	Embroidery in the piece, in strips or in motifs, Embroidered badges, motifs and the like [other than Embroidery or zari articles, that is to say,- imi, zari, kasab, saima, dabka, chumki, gota sitara, naqsi, kora, glass beads, badla, glzal	Embroidery in the piece, in strips or in motifs
168.	5911	Textile products and articles, for technical uses, specified in Note 7 to this Chapter; such as Textile fabrics, felt and felt-lined woven fabrics, coated, covered or laminated with rubber, leather or other material, of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams); Bolting cloth, whether or Not made up; Felt for cotton textile industries, woven; Woven textiles felt, whether or not impregnated or coated, of a kind commonly used in other machines, Cotton fabrics and articles used in machinery and plant, Jute fabrics and articles used in machinery or plant, Textile fabrics of metalised yarn of a kind commonly used in paper making or other machinery, Straining cloth of a kind used in oil presses or the like, including that of human hair, Paper maker's felt, woven, Gaskets, washers, polishing discs and other machinery parts of textile articles	Textile products and articles, for technical uses, specified in Note 7 to  Chapter 59 ; such as Textile fabrics, felt and felt-lined woven fabrics, coated, covered or laminated with rubber, leather or other material, of a kind used for card clothing, and similar fabrics of a kind used for other technical purposes, including narrow fabrics made of velvet impregnated with rubber, for covering weaving spindles (weaving beams); Bolting cloth, whether or Not made up; Felt for cotton textile industries, woven; Woven textiles felt, whether or not impregnated or coated, of a kind commonly used in other machines, Cotton fabrics and articles used in machinery and plant, Jute fabrics and articles used in machinery or plant, Textile fabrics of metalised yarn of a kind commonly used in paper making or other machinery, Straining cloth of a kind used in oil presses or the like, including that of human hair, Paper maker's felt, woven, Gaskets, washers, polishing discs and other machinery parts of textile articles

Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 (“IGST Act”) and Union Territory Goods and Services Tax Act, 2017 (“UTGST Act”).

CGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-14-2021-CGST.pdf

IGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-14-2021-IGST.pdf

UTGST (Rate) Notification: http://www.a2ztaxcorp.com/wp-content/uploads/2021/11/Notification-14-2021-UTGST.pdf