It is analysed that designer sarees with embroidery or different style will draw 5% GST, as per the Central Board of Excise and Customs (CBEC). The board also added that the sarees are considered as fabric and remain the same whether it is embroidered or not, as they will still be known as sarees.
Therefore, sarees embroidered or not, would be taxed at the same rate at which the fabric is taxed. Also 5% GST is levied only on job process relating to the textile yarn and fabrics but not on man-made fibre. The board further explains that if the sale value is not exceeding Rs 1,000, then only 5%GST will be charged but if the sale amount s more than Rs 1000 then 12% GST will be charged. CBEC boards explained in FAQs.
GST rates are fixed by GST Council for men and women apparels. For women it would be 5% GST for all types of fabric and for men apparels it will depend on price, if price is more than Rs 1000 will draw 12% GST and less than Rs 1000 it will be 5% GST.
CBEC also added that old dhotis will be considered as worn clothing and this will be taxed as per sale price and new dhotis will be charged 5% GST. As presumably, the old cotton dhoti would be below the sale value of Rs 1,000 per piece, it would be taxed at 5%.
Only 18% GST will be charged on the jute made bags and products, CBEC informs.