Related Keywords: attract five percent GST, CBEC, Central Board of Excise and Customs, character and use, no new item emerges having a distinct name, remains so even after embroidery, same rate which fabric is taxed, sarees treated as fabric, value added
Clearing the air over whether sarees will be treated as garments or fabric, the Central Board of Excise and Customs (CBEC) said that sarees are treated as fabric and it remains so even after embroidery etc as no new item emerges having a distinct name, character and use.
Hence, all designer, embroidered sarees or otherwise value added will attract a 5% goods and services tax. Infact, sarees, embroidered or not, would be taxed at the same rate at which the fabric is taxed, the CBEC explained.
