GST on Imitation Zari Thread

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..... larification regarding GST rate on imitation zari thread or yarn based on the recommendation of the GST Council in its 52nd meeting held on 7th October, 2023 The recent circular issued by the Haryana State Government, dated November 9, 2023, addresses a crucial matter in the textile industry: the Goods and Services Tax (GST) rate applicable to imitation zari thread or yarn. This circular, origina .....

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..... arn, often combined with nylon, cotton, polyester, or other yarns to create imitation zari thread. The question was whether such metallised yarn should be categorized under Sl. No. 218AA of Schedule I, which attracts a 5% GST rate, or under Sl. No. 137 of Schedule II, which would mean a higher GST rate of 12%​​. Clarification and Implications The GST Council's clarification state .....

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..... s more cost-effective, potentially boosting their demand and production. However, the exclusion of refunds on polyester or plastic films due to tax inversion could offset some financial benefits for manufacturers using these materials. Conclusion This circular is a significant step in clarifying the GST rates applicable to imitation zari thread or yarn, bringing much-needed relief and clarity to .....

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