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
Topic | Click Link |
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 |