Is GST on clothes 12%?

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As of September 22, 2025, the Goods and Services Tax (GST) on most clothes no longer uses the 12% rate. The current rates in India are based on the transaction value:

How much GST is charged on clothing?

All sorts of clothes and apparel with a market cost higher than Rs. 1000 are subject to a 12% GST Rate. The standard GST rate for textile products is 12%, while 5% GST is applied if the cost of apparel and footwear is less than ₹1,000.

How much is the GST rate on clothes?

The GST slabs are currently set at 5%, 12%, 18% and 28% for most goods and services. To calculate IGST, just multiply the taxable amount by the appropriate GST rate. For an intra-state transaction, you'll need to calculate CGST & SGST/UTGST. In this case, the sum of CGST and SGST/UTGST is equal to the total GST amount.

Is there 12% GST now?

The new GST structure at a glance

India has moved from the earlier four-tier GST system (5%, 12%, 18%, 28%) to a simplified two-rate structure: 5% (Merit rate) – Essentials and mass-consumption goods. 18% (Standard rate) – Most other goods and services.

Is GST 10 or 15 percent?

GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia. To work out the cost of an item including GST, multiply the amount exclusive of GST by 1.1. To work out the GST component, divide the GST inclusive cost by 11.

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What items are exempt from GST?

Zero-rated supplies

  • basic groceries such as milk, bread, and vegetables.
  • agricultural products such as grain, raw wool, and dried tobacco leaves.
  • most farm livestock.
  • most fishery products such as fish for human consumption.
  • prescription drugs and drug-dispensing services.

Has GST reduced on clothing?

Effective September 22, 2025, India implements revised GST rates on apparel. Clothing priced between Rs 1,000 and Rs 2,500 will benefit from a reduced 5% GST, while items exceeding Rs 2,500 will be taxed at 18%.

How is GST calculated on clothing?

Calculate the GST amount: Multiply the value of the apparel by the applicable GST rate.

  1. For instance, if a garment is priced at ₹2,000, the GST amount would be ₹2,000 * 5% = ₹100.
  2. If the garment is priced at ₹3,000, the GST amount would be ₹3,000 * 18% = ₹540.

Will clothing be exempt from GST?

Which products are eligible for the GST exemption? Eligible items include prepared foods (e.g., vegetable trays, pre-made meals), restaurant meals, snacks, children's clothing and footwear, children's toys, books, print newspapers, and Christmas trees, among others.

Which items got 40% GST?

Key Categories of Goods under 40% GST Slab

  • Tobacco and related intoxicants as sin goods (e.g., cigarettes, bidis, pan masala, caffeinated drinks)
  • Drinks with high sugar content and caffeinated.
  • Super-luxury and luxury 4-wheelers, 2-wheelers and personal use yacht, aircraft, etc.
  • Casino games and betting activities.

How to calculate GST 12 percent?

For instance, if a goods or services is sold at Rs. 1,000 and the GST rate applicable is 12%, then the net price calculated will be = 1,000+ (1,000X(12/100)) = 1,000+120 = Rs. 1,120.

Which thing has the highest GST?

The highest GST rate in India is 40%. Personal Use Aircraft, tobacco, aerated beverages, Betting/ Gambling/ Horse Racing/ Lottery/ Online Money Gaming, Carbonated Beverages of Fruit Drink and few others are included in 40% of GST rate.

Is GST applicable on all types of cloth?

The standard GST rate on fabric is 5%, across all material types. Yes, the cotton fabric GST rate is 5% under HSN codes starting from 5208. GST on polyester fabric is also 5%, though polyester yarn may attract higher GST.

What is the GST rate for socks?

The GST rate for most knitted or crocheted socks is 12%, but it can be 5% if the sale value per piece does not exceed Rs 1000.

Is there GST on shoes above 1000?

GST will be 12%, as it's below the ₹1,000 threshold. GST on shoes above ₹1,000 is 18%, regardless of type or brand.

What is the new GST for clothing?

Readymade garments GST rate is 5% for items priced at ₹1,000 or less. Clothes priced over ₹1,000 attract 12% GST.

How much percent GST on clothes?

From January 2022, the GST rates on clothes overall was going to be fixed at 12% irrespective of value. It means that the GST rates on clothes of any value whether below Rs. 1,000 or above Rs. 1,000 is 12%, compared to the earlier GST of 5% on garments priced up to Rs.

Is there any GST cut on clothes?

New GST rates for apparel

Under the revised structure: Apparel priced up to ₹2,500 will attract 5% GST (earlier 5% below ₹1,000 and 12% for ₹1,000–2,500). Apparel above ₹2,500 will now be taxed at 18% (up from 12%).

What items don't include GST?

Main GST-free products and services

  • most basic food.
  • some education courses, course materials and related excursions or field trips.
  • some medical, health and care services.
  • some menstrual products.
  • some medical aids and appliances.
  • some medicines.
  • some childcare services.
  • some religious services and charitable activities.

Is GST the same in every country?

Key takeaways. GST varies widely by country: Rates, thresholds, and filing requirements differ significantly across jurisdictions like Australia, India, and Canada, making localized compliance essential.

What has 12% GST?

5% GST Slab: Common goods such as packaged food. 12% GST Slab: Processed food, fruit juices, frozen meat, butter, ghee, nuts, etc. 18% GST Slab: Most services like restaurants, telecom and banking, cosmetics, toiletries, hair oil, toothpaste, and capital goods.