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Notification No. 14/2021 – UTTR GST Textile Rate

by Shakshi Bharti | Feb 17, 2024 | GST, 2021 Notifications, Notifications, Union Territory Tax (Rate) 2021 Notifications | 0 comments

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Important Keyword: Notification No. 14/2021 – Union Territory Tax (Rate), GST textile amendment, UTGST 2022, CBIC GST rate update, Notification No. 14/2021 – Union Territory Tax (Rate), GST textile rate amendment 2022, UTGST footwear GST update, CBIC GST 2021, Notification 1/2017 amendment, GST woven fabric rate, Finodha GST experts,

Words: 2637; Read time: 14minutes.

[F.No.190354/206/2021-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

New Delhi, the 18^th November, 2021

Notification No. 14/2021 - Union Territory Tax (Rate): Seeks to further amend notification No. 01/2017-Union Territory Tax (Rate) dated 28-06-2017.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 7 of the UTGST Act, 2017 (14 of 2017) read with sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-Union Territory Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E), dated the 28th June, 2017, namely:-

In the said notification, -

(a). in Schedule I – 2.5%, -

(i) S. Nos. 203, 207, 211, 216, 217, 218, 218B, 218C, 219A, 219AA, 219B, 220, 221, 222, 223, 224, 224A and 225 and the entries relating thereto shall be omitted;

(b). in Schedule II – 6%, -

i. S. No. 132A and the entries relating thereto shall be omitted;

ii. after S. No. 132A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely:-

“132AA	5007	Woven fabrics of silk or of silk waste.
132AB	5111	Woven fabrics of carded wool or of carded fine animal hair.
132AC	5112	Woven fabrics of combed wool or of combed fine animal hair.
132AD	5113	Woven fabrics of coarse animal hair or of horse hair.
132AE	5208	Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing not more than 200g/m².
132AF	5209	Woven fabrics of cotton, containing 85% or more by weight of cotton, weighing more than 200g/m².

132AG	5210	Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibers, weighing not more than 200g/m².
132AH	5211	Woven fabrics of cotton, containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibers, weighing more than 200g/m².
132AI	5212	Other woven fabrics of cotton.
132AJ	5309	Woven fabrics of flax.
132AK	5310	Woven fabrics of jute or of other textile bast fibres of heading 5303.
132AL	5311	Woven fabrics of other vegetable textile fibres; woven fabrics of paper yarn.”;

GST

iii. S. No. 132B and the entries relating thereto shall be omitted;

iv. after S. No. 132B and the entries relating thereto, the following serial numbers and entries shall be inserted, namely:-

“132BA	5401	Sewing thread of man-made filaments, whether or not put up for retail sale.
132BB	5402	Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex.
132BC	5403	Artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 decitex.
132BD	5404	Synthetic monofilament of 67 dacite or more and of which no cross-sectional dimension exceeds 1 mm; strip and the like (for example, artificial straw) of synthetic textile materials of an apparent width not exceeding 5 mm.

132BE	5405	Artificial monofilament of 67 dacite 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.
132BF	5406	Man-made filament yarn (other than sewing thread), put up for retail sale.
132BG	5407	Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404.
132BH	5408	Woven fabrics of artificial filament yarn, including woven fabrics obtained from materials of heading 5405.”;

GST

v. S. No. 132C and the entries relating thereto shall be omitted;

vi. after S. No. 132C and the entries relating thereto, the following serial numbers and entries shall be inserted, namely:-

“132CA	5501	Synthetic filament tow.
132CB	5502	Artificial filament tow
132CC	5503	Synthetic staple fibers, not carded, combed or otherwise processed for spinning.
132CD	5504	Artificial staple fibers, not carded, combed or otherwise processed for spinning.
132CE	5505	Waste (including noils, yarn waste and garnetted stock) of man-made fibres.
132CF	5506	Synthetic staple fibres, carded, combed or otherwise processed for spinning.
132CG	5507	Artificial staple fibers, carded, combed or otherwise processed for spinning.
132CH	5508	Sewing thread of man-made staple fibres, whether or not put up for retail sale.

132CI	5509	Yarn (other than sewing thread) of synthetic staple fibres, not put up for retail sale.
132CJ	5510	Yarn (other than sewing thread) of artificial staple fibres, not put up for retail sale.
132CK	5511	Yarn (other than sewing thread) of man- made staple fibres, put up for retail sale.
132CL	5512	Woven fabrics of synthetic staple fibers, containing 85% or more by weight of synthetic staple fibers.
132CM	5513	Woven fabrics of synthetic staple fibers, containing less than 85% by weight of such fibers, mixed mainly or solely with cotton, of a weight not exceeding 170 g/m².
132CN	5514	Woven fabrics of synthetic staple fibers, containing less than 85% by weight of such fibers, mixed mainly or solely with cotton, of a weight exceeding 170 g/m².
132CO	5515	Other woven fabrics of synthetic staple fibres.
132CP	5516	Woven fabrics of artificial staple fibres.”;

GST

vii. S. No. 132D and the entries relating thereto shall be omitted;

viii. against S. No. 139, in column (3), for the entry, the entry “Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated or sheathed with rubber or plastics.” shall be substituted;

ix. after S. No. 139 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:-

“139A

5608

Knotted netting of twine, cordage or rope; made up of fishing nets and other made up nets, of textile materials.”;

GST

x. after S. No. 146 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-

“146A

5801

Woven pile fabrics and chenille fabrics, other than fabrics of heading 5802 or 5806.”;

GST

xi. after S.No. 151 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:-

“151A

5806

Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs).”;

GST

xii. against S. No. 154, in column (3), for the entry, the entry “Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pompons and similar articles.” shall be substituted;

xiii. against S. No. 155, in column (3), for the entry, the entry “Woven fabrics of metal thread and woven fabrics of metallized yarn of heading 5605, of a kind used in apparel, as furnishing fabrics or for similar purposes, not elsewhere specified or included.” shall be substituted;

xiv. against S.No. 156, in column (3), for the entry, the entry “Embroidery in the piece, in strips or in motifs.” shall be substituted;

xv. against S. No. 168, in column (3), for the words “this Chapter”, the word and the figure “Chapter 59” shall be substituted;

xvi. after S. No. 168 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely:-

“168A	6001	Pile fabrics, including “long pile” fabrics and terry fabrics, knitted or crocheted.
168B	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.

168C	6003	Knitted or crocheted fabrics of a width not exceeding 30 cm, other than those of heading 6001 or 6002.
168D	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.
168E	6005	Warp knit fabrics (including those made on galloon knitting machines), other than those of headings 6001 to 6004.
168F	6006	Other knitted or crocheted fabrics.”;

GST

xvii. against S. No. 169, in column (3), for the entry, the entry “Articles of apparel and clothing accessories, knitted or crocheted.” shall be substituted;

xviii. against S. No. 170, in column (3), for the entry, the entry “Articles of apparel and clothing accessories, not knitted or crocheted.” shall be substituted;

xix. S. No. 171 and the entries relating thereto shall be omitted;

xx. after S. No. 171A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely:-

“171A1	6301	Blankets and travelling rugs.
171A2	6302	Bed linen, table linen, toilet linen and kitchen linen.
171A3	6303	Curtains (including drapes) and interior blinds; curtain or bed valances.
171A4	6304	Other furnishing articles, excluding those of heading 9404.
171A5	6305	Sacks and bags, of a kind used for the packing of goods.
171A6	6306	Tarpaulins, awnings and sunblinds; tents; sails for boats, sailboards or landcraft; camping goods.
171A7	6307	Other made up articles, including dress patterns.
171A8	6308	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 packings for retail sale.

171A9	6309	Worn clothing and other worn articles.
171A10	6310	Used or new rags, scrap, twine, cordage, rope and cables and worn out articles of twine, cordage, rope or cables, of textile materials.
171A11	64	Footwear of sale value not exceeding Rs.1000 per pair.”

GST

(c). in Schedule III – 9%, -

i. S. Nos. 159, 160, 161, 162 and 163 and the entries relating thereto shall be omitted.

2. This notification shall come into force on the 1^st day of January, 2022, unless otherwise stated.

(Gaurav Singh)
Deputy Secretary to the Government of India

Note: - The principal notification No.1/2017 - Union Tax (Rate), dated the 28^th June, 2017, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 710(E), dated the 28^th June, 2017, and was last amended vide notification No. 13/2021 – Union Tax (Rate), dated the 27^th October, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 765(E), dated the 27^th October, 2021.

📚 Frequently Asked Questions (FAQs): Notification No. 14/2021 - Union Territory Tax (Rate)

Q1️⃣: What is Notification No. 14/2021 – Union Territory Tax (Rate)? 🧾

Answer:
This notification amends Notification No. 1/2017 – Union Territory Tax (Rate) to update GST rates and reclassify textile-related goods.
It covers items such as cotton fabrics, silk, wool, synthetic yarns, woven fabrics, and footwear, revising them under specific schedules for uniform GST treatment.
👉 For expert guidance, visit Finodha GST Professionals.

Q2️⃣: When does this notification come into effect? 📅

Answer:
The notification became effective from 1st January 2022, aligning with the government’s plan to rationalize GST rates across textiles and footwear industries.

Q3️⃣: Which earlier notification was amended by this one? 🔄

Answer:
It amends Notification No. 1/2017 – Union Territory Tax (Rate), which defines GST rates for goods under the Union Territory Goods and Services Tax Act, 2017 (UTGST).

Q4️⃣: What are the main objectives of Notification No. 14/2021 - UTGST? 🎯

Answer:
The main goals are:
✅ To restructure HSN classifications for fabrics, yarns, and footwear.
✅ To simplify textile GST rates under Schedule II (6%) for clarity.
✅ To align GST rates with international tariff codes for trade uniformity.
✅ To improve revenue transparency in textile and apparel sectors.
(Focus Keywords: Notification No. 14/2021 – Union Territory Tax (Rate), GST fabric amendment, UTGST update 2022)

Q5️⃣: What key textile items were affected by this amendment? 🧵👗

Answer:
The amendment impacts a wide range of textile goods, including:
Woven fabrics of silk, wool, flax, jute, cotton, and man-made fibres (HSN 5007 to 5516).
Sewing threads and yarns made of synthetic and artificial fibres (5401 to 5408).
Knitted or crocheted fabrics and garments (6001 to 6006).
Textile furnishing items like curtains, blankets, and bed linen (6301 to 6309).
Footwear priced below ₹1,000 per pair (HSN 64).
For compliance on textile GST rates, visit GST Compliance Services.

Q6️⃣: What are the changes made to Schedule I (2.5%) and Schedule II (6%)? ⚙️

Answer:
In Schedule I (2.5%) – Certain textile entries were omitted (e.g., S.No. 203–225).
In Schedule II (6%) – Multiple new textile entries were added, such as:
Woven fabrics (5007–5311)
Man-made filament yarns (5401–5408)
Synthetic staple fibres and woven blends (5501–5516)
Knotted nettings and narrow woven fabrics (5608, 5806)
This effectively moves many textile goods from 5% to 12% GST (combined UTGST + CGST).

Q7️⃣: How does this notification impact the footwear sector? 👟

Answer:
A new entry (S.No. 171A11) was inserted under Schedule II (6%) for:
“Footwear of sale value not exceeding ₹1,000 per pair.”
This means footwear below ₹1,000 is now taxed at 6% UTGST + 6% CGST = 12% total GST, replacing the previous 5% rate.
For footwear business compliance, visit GST Return Filing Services.

Q8️⃣: Why was GST rate increased for textiles and footwear? 💡

Answer:
The GST Council revised rates to:
Remove rate inversion issues (where input taxes exceeded output taxes).
Create a uniform GST rate structure for textile products.
Simplify compliance and input tax credit (ITC) claims.
Prevent tax evasion through product misclassification.
(Focus Keywords: Notification No. 14/2021 – Union Territory Tax (Rate), GST footwear textile rate hike)

Q9️⃣: What is the impact on small-scale textile manufacturers and traders? 🏭

Answer:
✅ Increased GST rate (12%) may raise product costs slightly.
✅ However, manufacturers can now claim higher ITC, balancing the impact.
✅ Simplified HSN classifications make filing and audit easier.
✅ Encourages formalization of small textile and footwear units.
For assistance with business setup, visit Setup Business in India or MSME Registration.

Q🔟: Where can taxpayers get professional assistance with these GST amendments? 💼

Answer:
You can reach out to Finodha GST Experts for professional help with:
🧾 GST Registration
💼 GST Compliance
📊 Private Limited Compliance
💡 Income Tax Return Filing
💻 Digital Signature Certificate (DSC)

📘 Summary

Notification No. 14/2021 – UTGST makes comprehensive changes to GST rates for textile and footwear goods, effective from 1st January 2022.
It brings multiple fabric and yarn types under the 6% UTGST rate (12% total GST), eliminating classification confusion and ensuring a uniform tax system for the textile sector.