Cir No.G-2 / 22 / 2017

Cir No : G -2 / 22 / 17                                                                         6th November 2017

TO ALL MEMBERS OF THE ASSOCIATION :

Dear Sir,

The Association had made a Representation vide Letter No. G-2 / 329 / 17 dated 4th October 2017 to the Ministry of Finance and the Ministry of Textiles urging them to consider reducing the GST Rate on Unstitched Salwar Suits from 18% to 5% thereby correcting the anomaly and treating all Fabric Cut Lengths as Fabric with the Uniform GST Rate of 5%.

We are glad to inform you that due to the persistent efforts by the Association , the Ministry of Finance has once again accepted the  Recommendation of the Association and issued a Circular No 13/13/2017 – GST dtd 27th October 2017 clarifying  that mere Cutting and Packing of Fabrics into Pieces of different length from Bundles or Thans will not change the Nature of these Goods and such Pieces of Fabrics would continue to be Classifiable under the Respective Heading as Fabric and attract 5% GST Rate with no Refund of the Unutilised Input Tax Credit , under Chapter 50 to 55 of the First Schedule to the Customs Tariff Act 1975 .

The said Circular is enclosed herewith and the same has also been Uploaded on the Website www.cmai.in

This is for your kind information.

Thanking you,

CS_Sign

P. Chandrasekharan
Secretary

The Clothing Manufacturers Association of India
902, Mahalaxmi Chambers,
22, Bhulabhai Desai Road,
Mumbai 400 026
t: +91 22 23538245 / 23520104
f: +91 22 23515908
w: www.cmai.in

Encl : As stated above

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