Changes in GST Rates Applicable From 01.01.2022

18 Dec, 2021

Government has proposed to make changes in GST rates in various sectors affecting mainly textiles, footwear and e-commerce businesses from 1^st January 2022.

In this regards government has issued various notifications as mentioned below:

Notification no.	Date	Sector
Notification No. 14/2021-CT (Rate)	18.11.2021	Textile Sector
Notification No. 15/2021-CT (Rate)	18.11.2021	Textile Sector
Notification No. 14/2021-CT (Rate)	18.11.2021	Footwear sector
Notification No. 16 & 17/2021-CT (Rate)	18.11.2021	E-commerce Sector

Let us see the changes in rates sector wise and how it will have an impact on seller or consumers.

Textile Sector

The finance ministry on November 18, has notified about 7% increase in GST rates in textile sector. This industry from years was making representations to the finance ministry to address the anomaly in the input and output tax rates.

In most of the cases, input rate was higher as compared to the output rates. The sector was expecting the change to be as lower rates in input purchases.

However, the government has stated that even the finished goods in textile industry will now be taxed at 12% from earlier rate of 5%.

The hike in the output GST has now caused pain in the sector as the sector is mainly dominated by MSMEs and MSMEs have already affected hard due to the pandemic and now due to the increased GST rates.

As per the industry people, adding 12% GST on clothing which is a basic need is totally unjustifiable.

The below table can be seen for changes in GST rates across different products in textile industry:

HSN Code	Description of Goods	Old rate	New rate
5007	WOVEN FABRICS OF SILK OR OF SILK WASTE	5%	12%
5111	WOVEN FABRICS OF CARDED WOOL OR OF CARDED FINE ANIMAL HAIR - Containing 85% or more by weight of wool or of fine animal hair	5%	12%
5112	WOVEN FABRICS OF COMBED WOOL OR OF COMBED FINE ANIMAL HAIR - Containing 85% or more by weight of wool or of fine animal hair	5%	12%
5113	WOVEN FABRICS OF COARSE ANIMAL HAIR OR of horse hair	5%	12%
5208	WOVEN FABRICS OF COTTON, CONTAINING 85% OR MORE BY WEIGHT OF COTTON, WEIGHING NOT MORE THAN 200 G/M2 - Unbleached	5%	12%
5209	WOVEN FABRICS OF COTTON, CONTAINING 85% OR MORE BY WEIGHT OF COTTON, WEIGHING MORE THAN 200 G/M 2 - Unbleached	5%	12%
5210	WOVEN FABRICS OF COTTON, CONTAINING LESS THAN 85% BY WEIGHT OF COTTON, MIXED MAINLY OR SOLELY WITH MAN-MADE FIBRES, WEIGHING NOT MORE THAN 200 G/M 2 - Unbleached	5%	12%
5211	WOVEN FABRICS OF COTTON, CONTAINING LESS THAN 85% BY WEIGHT OF COTTON, MIXED MAINLY OR SOLELY WITH MAN-MADE FIBRES, WEIGHING MORE THAN 200 G/M2 - Unbleached	5%	12%
5212	OTHER WOVEN FABRICS OF COTTON - Weighing not more than 200 g/m2	5%	12%
5309	WOVEN FABRICS OF FLAX - Containing 85% or more by weight of flax	5%	12%
5310	WOVEN FABRICS OF JUTE OR OF OTHER TEXTILE BASE FIBRES OF HEADING 5303	5%	12%
5311	WOVEN FABRICS OF OTHER VEGETABLE TEXTILE FIBRES; WOVEN FABRICS OF PAPER YARN	5%	12%
5402	SYNTHETIC FILAMENT YARN (OTHER THAN SEWING THREAD), NOT PUT UP FOR RETAIL SALE, INCLUDING SYNTHETIC MONOFILAMENT OF LESS THAN 67 DECITEX - High tenacity yarn of nylon or other polyamides	12% /18%	12%
5403	ARTIFICIAL FILAMENT YARN (OTHER THAN SEWING THREAD), NOT PUT FOR RETAIL SALE, INCLUDING ARTIFICIAL MONO FILAMENT OF LESS THAN 67 DECITEX	12% /18%	12%
5404	SYNTHETIC MONOFILAMENT OF 67 DECITEX OR MORE AND OF WHICH NO CROSSSECTIONAL DIMENSION EXCEEDS 1 MM; STRIP AND THE LIKE (FOR EXAMPLE, ARTIFICIAL STRAW) OF SYNTHETIC TEXTILE MATERIALS OF AN APPARENT WIDTH NOT EXCEEDING 5 MM - Monofilament	12% /18%	12%
5405	ARTIFICIAL MONOFILAMENT OF 67 DECITEX OR MORE AND OF WHICH NO CROSS-SECTIONAL DIMENSION EXCEEDS 1 MM; STRIP AND THE LIKE (FOR EXAMPLE, ARTIFICIAL STRAW) OF ARTIFICIAL TEXTILE MATERIALS OF AN APPARENT WIDTH NOT EXCEEDING 5 MM	12% /18%	12%
5406	MAN-MADE FILAMENT YARN (OTHER THAN SEWING THREAD), PUT UP FOR RETAIL SALE	12% /18%	12%
5407	WOVEN FABRICS OF SYNTHETIC FILAMENT YARN, INCLUDING WOVEN FABRICS OBTAINED FROM MATERIALS OF HEADING 5404	5%	12%
5408	WOVEN FABRICS OF ARTIFICIAL FILAMENT YARN,INCLUDING WOVEN FABRICS OBTAINED FROM MATERIALS OF HEADING 5405	5%	12%
5501	WOOL, NOT CARDED OR COMBED SYNTHETIC FILAMENT TOW	18%	12%
5502	ARTIFICIAL FILAMENT TOW	18%	12%
5503	SYNTHETIC STAPLE FIBRES, NOT CARDED, COMBED OR OTHERWISE PROCESSED FOR SPINNING - Of nylon or other polyamides	18%	12%
5504	ARTIFICIAL STAPLE FIBRES, NOT CARDED, COMBED OR OTHERWISE PROCESSED FOR SPINNING	18%	12%
5505	WASTE (INCLUDING NOILS, YARN WASTE AND GARNETTED STOCK) OF MAN-MADE FIBRES	18%	12%
5506	SYNTHETIC STAPLE FIBRES, CARDED COMBED OR OTHERWISE PROCESSED FOR SPINNING	18%	12%
5507	ARTIFICIAL STAPLE FIBRES, CARDED, COMBED OR OTHERWISE PROCESSED FOR SPINNING	18%	12%
5512	Woven fabrics of synthetic staple fibres, CONTAINING 85% OR MORE BY WEIGHT OF SYNTHETIC STAPLE FIBRES - Containing 85% or more by weight of polyester staple fibres	5%	12%
5513	WOVEN FABRICS OF SYNTHETIC STAPLE FIBRES, CONTAINING LESS THAN 85% BY WEIGHT OF SUCH FIBRES, MIXED MAINLY OR SOLELY WITH COTTON, OF A WEIGHT NOT EXCEEDING 170 g/m2 - Unbleached or bleached	5%	12%
5514	WOVEN FABRICS OF SYNTHETIC STAPLE FIBRES, CONTAINING LESS THAN 85% BY WEIGHT OF SUCH FIBRES, MIXED MAINLY OR SOLELY WITH COTTON, OF A WEIGHT EXCEEDING 170 G/M2 - Unbleached or bleached	5%	12%
5515	OTHER WOVEN FABRICS OF SYNTHETIC STAPLE FIBRES - Of polyester staple fibres	5%	12%
5516	WOVEN FABRICS OF ARTIFICIAL STAPLE FIBRES - Containing 85% or more by weight of artificial staple fibres	5%	12%
5607	TWINE, CORDAGE, ROPES AND CABLES, WHETHER OR NOT PLAITED OR BRAIDED AND WHETHER OR NOT IMPREGNATED, COATED, COVERED OR SHEATHED WITH RUBBER OR PLASTICS - Of sisal or other textile fibres of the genus Agave	5%	12%
5608	KNOTTED NETTING OF TWINE, CORDAGE OR ROPE; MADE UP FISHING NETS AND OTHER MADE UP NETS, OF TEXTILE MATERIALS - Of man-made textile materials	5%	12%
5801	WOVEN PILE FABRICS AND CHENILLE FABRICS, OTHER THAN FABRICS OF HEADING 5802 OR 5806	5%	12%
5806	NARROW WOVEN FABRICS OTHER THAN GOODS OF HEADING 5807; NARROW FABRICS CONSISTING OF WARP WITHOUT WEFT ASSEMBLED BY MEANS OF AN ADHESIVE (BOLDUCS)	5%	12%
5808	BRAIDS IN THE PIECE; ORNAMENTAL TRIMMINGS IN THE PIECE, WITHOUT EMBROIDERY, OTHER THAN KNITTED OR CROCHETED; TASSELS, POMPONS AND SIMILAR ARTICLES	5%	12%
5809	WOVEN FABRICS OF METAL THREAD AND WOVEN FABRICS OF METALLISED YARN OF HEADING 5605, OF A KIND USED IN APPAREL, AS FURNISHING FABRICS OR FOR SIMILAR PURPOSES, NOT ELSEWHERE SPECIFIED OR INCLUDED	5%	12%
6001	PILE FABRICS, INCLUDING LONG PILE FABRICS AND TERRY FABRICS, KNITTED OR CROCHETED	5%	12%
6002	KNITTED OR CROCHETED FABRICS OF A WIDTH NOT EXCEEDING 30 CM, CONTAINING BY WEIGHT 5% OR MORE OF ELASTOMERIC YARN OR RUBBER THREAD, OTHER THAN THOSE OF HEADING 6001	5%	12%
6003	KNITTED OR CROCHETED FABRICS OF A WIDTH NOT EXCEEDING 30 CM, OTHER THAN THOSE OF HEADING 6001 OR 6002	5%	12%
6004	KNITTED OR CROCHETED FABRICS OF A WIDTH EXCEEDING 30 CM, CONTAINING BY WEIGHT 5% OR MORE OF ELASTOMERIC YARN OR RUBBER THREAD, OTHER THAN THOSE OF HEADING 6001	5%	12%
6005	WARP KNIT FABRICS (INCLUDING THOSE MADE ON GALLOON KNITTING MACHINES), OTHER THAN THOSE OF HEADINGS 6001 TO 6004 ---- Of cotton	5%	12%
6006	OTHER KNITTED OR CROCHETED FABRICS	5%	12%
61	Articles of apparel and clothing accessories, knitted or crocheted	5%	12%
62	Articles of apparel and clothing accessories, not knitted or crocheted	5%	12%
6301	BLANKETS AND TRAVELLING RUGS	5%	12%
6302	BED LINEN, TABLE LINEN, TOILET LINEN AND KITCHEN LINEN	5%	12%
6303	CURTAINS (INCLUDING DRAPES) AND INTERIOR BLINDS; CURTAIN OR BED VALANCES - Knitted or crocheted	5%	12%
6304	OTHER FURNISHING ARTICLES, EXCLUDING THOSE OF HEADING 9404 - Bedspreads	5%	12%
6305	SACKS AND BAGS, OF A KIND USED FOR THE PACKING OF GOODS	5%	12%
6306	TARPAULINS, AWNINGS AND SUNBLINDS; TENTS; SAILS FOR BOATS, SAILBOARDS OR LANDCRAFT; CAMPING GOODS - Tarpaulins, awnings and sunblinds	5%	12%
6307	OTHER MADE UP ARTICLES, INCLUDING DRESS PATTERNS	5%	12%
6308	II..SETS SETS CONSISTING OF WOVEN FABRIC AND YARN, WHETHER OR NOT WITH ACCESSORIES, FOR MAKING UP INTO RUGS, TAPESTRIES, EMBROIDERED TABLE CLOTHS OR SERVIETTES, OR SIMILAR TEXTILE ARTICLES, PUT UP IN PACKINGSFOR RETAIL SALE	5%	12%
6309	WORN CLOTHING AND OTHER WORN ARTICLES	5%	12%
6310	USED OR NEW RAGS, SCRAP TWINE, CORDAGE, ROPE AND CABLES AND WORN OUT ARTICLES OF TWINE, CORDAGE, ROPE OR CABLES, OF TEXTILE MATERIALS	5%	12%
5810	EMBROIDERY IN THE PIECE, IN STRIPS OR IN MOTIFS	5%	12%

Footwear Sector

With regards to footwear rates also, GST has been increased from 5% to 12%.

Footwears are also general necessity item and increased GST will result in more costlier footwears. Common man will face more burden on his pocket from now on.

The below table can be seen for changes in GST rates across different products in footwear industry:

HSN Code	Description of Goods	Old rate	New rate
64	Footwear having a retail sale price not exceeding Rs.1000 per pair, provided that such retail sale price is indelibly marked or embossed on the footwear itself.	5%	12%

E-commerce Sector

The scope of taxability of the service of transportation of passengers through electronic commerce operators has increased. The government has brought into GST purview some more services which were earlier exempt from GST.

HSN Code	Description of Goods	Old Rate	New rate
9964	Transport of passengers, with or without accompanied belongings, by: non-air-conditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire Stage carriage other than air-conditioned stage carriage supplied through an electronic commerce operator	Exempted	5%
9964	Service of transportation of passengers, with or without accompanied belongings, by: Metered cabs or auto rickshaws (including e-rickshaws) supplied through an electronic commerce operator	Exempted	5%

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5 Comments

Poonam Sharma
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- Poonam Sharma
  Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
  
  Reply
Poonam Sharma
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

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