Classification of Goods — Khadi readymade garments are not covered under the entry of 130A, chapter heading 50 to 55 of Notification No. 02/2017- Central Tax (Rate) dated 28.06.2017.

Khadi readymade garments will be classifiable under Chapter heading/ tariff item 62, as per Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 will attract GST as follows-:

a. If the sale value of a readymade khadi garments manufactured by the applicant is less than Rs.1000/- will attract GST @ 5% (SGST 2.5% + CGST 2.5%);

b. If the sale value of a readymade khadi garments manufactured by the applicant is more than Rs.1000/- will attract GST @ 12% (SGST 6% + CGST 6%). — Udyog Mandir, In Re.. [2019] 11 TAXLOK.COM 068 (AAR-Rajasthan)