GST & Latest Policy

GST Rates for Handloom HS codes at 4 Digit level
Chapter – 50
Silk
Tariff Item Description GST Rates
1. 5007 Woven fabrics of silk or of silk waste 5% (With no refund of ITC accumulation) 5% (With no refund of ITC accumulation)
Chapter – 51
Wool, finer coarse animal hair; horsehair yarn and woven fabric
Tariff Item Description GST Rates
2. 5112 Woven fabrics of combed wool or of combed fine animal hair 5% (With no refund of ITC accumulation) 5% (With no refund of ITC accumulation)
Chapter – 52
Cotton
Tariff Item Description GST Rates
3. 5208 Woven fabrics of cotton, containing 85% or more by weight of cotton weighing not more than 200gsm 5% (With no refund of ITC accumulation) 5% (With no refund of ITC accumulation)
4. 5209 Woven fabrics of cotton, containing 85% or more by weight of cotton weighing more than 200gsm
Chapter – 57
Carpets and other Textile floor coverings
Tariff Item Description GST Rates
5. 5702 Carpets and other Textile floor coverings, Woven not tufted or flocked whether or not made up, including “Kelem”,“Schumacks”,“Karamanie” and similar hand-woven rugs. 12%
6. 5705 Other carpets and other textile floor coverings, whether or not made up.
Chapter – 58
Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery
Tariff Item Description GST Rates
7. 5802 Terry towelling and similar woven terry fabrics, other than narrow fabrics of heading 5806; tufted textile fabrics, other than products of heading 5703 12%
Chapter – 62
Articles of apparel and clothing accessories, not knitted or crocheted
Tariff Item Description GST Rates
8. 6214 Shawls, scarves, mufflers, mantillas, veils and the like 5% for all goods of sale value not exceeding Rs 1000 per piece
12% for all goods of sale value exceeding Rs 1000per piece
9. 6216 Gloves , mittens and mitts
Chapter – 63
Other made-up textile articles: sets; worn clothing and worn textile articles; rags
Tariff Item Description GST Rates
10. * 6302.10 Bed linen,Knitted or crocheted, Toilet linen and kitchen linen, of terry towelling or similar terry fabrics 5% for all goods of sale value not exceeding Rs 1000 per piece
12% for all goods of sale value exceeding Rs 1000per piece
11. 6304 Other furnishing articles,excluding those of heading 94.04
12. 6307 Other made up articles, including dress patterns
* Clarification is being sought whether tariff for goods under 6302.10 is applicable to all other goods under 6302
Salient features of Foreign Trade Policy 2015-2020 announced on April 1, 2015.
  1. The Foreign Trade Policy (FTP) comes into force with effect from 01.04.2015 and shall remain in force up to 31st March, 2020, unless otherwise specified.

  2. Government has focused on cutting down the transaction time and cost thereby rendering Indian exports more competitive.

  3. MSME clusters’ have been identified, based on the export potential of the product and the density of industries in the cluster, for focussed interventions to boost exports.

  4. Outreach activities shall be organized in a structured way with the help of Export Promotion Councils as ‘industry partners’ and other willing ‘knowledge partners’ in academia and research community to achieve the objective of Niryat Bandhu Scheme.

    Forthcoming e-Governance Initiatives are:

    (i) Message exchange for transmission of export reward scrips from DGFT to Customs.
    (ii) Message exchange for transmission of Bills of Entry (import details) from Customs to DGFT.
    (iii) Online issuance of Export Obligation Discharge Certificate (EODC).
    (iv) Message exchange with Ministry of Corporate Affairs for CIN & DIN information.
    (v) Message exchange with CBDT for PAN.
    (vi) Acceptance of payment through debit / credit card for payment of application fee under FTP.
    (vii) Open API for submission of e-IEC application.
    (viii) Mobile Applications for FTP.

  5. Single Window in Customs: To facilitate trade, the importer and exporter would lodge their clearance documents at a single point only. Required permission if any, from other regulatory agencies would be obtained online without the trader having to approach these agencies. This would reduce interface with Governmental agencies, dwell time and cost of doing business.
  6. Only one IEC is permitted against on Permanent Account Number (PAN). If any PAN card holder has more than one IEC, the extra IECs shall be disabled.
  7. Mandatory documents required for export of goods from India:
    (a) Bill of Lading/Airway Bill
    (b) Commercial Invoice cum Packing List*
    (c) Shipping Bill/Bill of Export
  8. Merchandise Exports from India Scheme (MEIS): A new scheme merging 5 different schemes (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) MEIS has been notified. Exports of notified goods/products with ITC[HS] code, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS. Duty Credit Scrips shall be granted as rewards under MEIS and SEIS. Duty Credit Scrips and goods imported / domestically procured against them shall be freely transferable.Exports of Handloom products bearing notified ITC HS codes are eligible for 5% of duty credit scrip to traditional markets (30 nos.), emerging & focus markets (139 nos.) and other markets (30 nos.).Exports of Handloom products through courier or foreign post office using e-commerce platform are eligible for benefit under MEIS.
  9. Status Holder:Status Holders are business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade.

    StatusCategory

    ExportPerformance

    FOB/FOR(asconverted)

    Value(inUS$million)

    One Star Export House

    3

    Two Star Export House

    25

    Three Star Export House

    100

    Four Star Export House

    500

    Five Star Export House

    2000

    The exports by IEC holders under the following categories shall be granted double weightage for calculation of export performance for grant of status.

    a. Micro, Small & Medium Enterprises (MSME) as defined in Micro, Small & Medium Enterprises Development (MSMED) Act 2006.
    b. Manufacturing units having ISO/BIS.
    c. Units located in North Eastern States including Sikkim and Jammu & Kashmir.
    d. Units located in Agri Export Zones.

    Double Weightage shall be available for grant of One Star Export House Status category only.

    Full text of Foreign Trade Policy 2015-2020 available at www.dgft.gov.in

All Industry Rates of Duty Drawback

Revised All Industry Rates of Duty Drawback has been announced and the rate revision is effective from 15.11.2016. Members may download the complete schedule from the link http://www.cbec.gov.in/resources//htdocs-cbec/customs/dbk-schdule/dbk-sch2016.pdf

Interest equalization scheme (earlier known as interest subvention scheme)

Interest Equalisation scheme is now extended for another five years with effect from 1st April, 2015, on Pre & Post Shipment Rupee Export Credit. Members may download from the link http://pib.nic.in/newsite/PrintRelease.aspx?relid=131591 for complete information.