Readymade garments of sale value not exceeding Rs. 1000 per piece attract 5% GST. Readymade garments of sale value exceeding Rs. 1000 per piece attract 12% GST. How does a supplier determine what rate to charge on readymade garments?
- The sale value referred to in the notification refers to the transaction value and not the retail sale price of such readymade garments.
- That is, if a wholesaler supplies readymade garments for a transaction value of Rs.950 per piece to a retailer, the GST chargeable on such readymade garments will be 5%.
- However, if the retailer sells such readymade garments for Rs.1100 per piece, the GST chargeable on such readymade garment will be 12%.
Related GST FAQ on HSN Codes
Related Topic on GST
|GST Acts||Central GST Act and States GST Acts|
|GST Rules||GST Rules|
|GST Forms||GST Forms|
|GST Rates||GST Rates|
|GST Notifications||GST Act Notifications|
|GST Circulars||GST Circulars|
|GST Judgments||GST Judgments|
|GST Press Release||GST Press Release|
|GST Books||Best Books on GST in India|
|GST Commentary||Topic wise Commentary on GST Act of India|
|GST You Tube Channel||TaxHeal You Tube Channel|
|GST Online Course||Join GST online Course|
|GST History||GST History and Background Material|