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India's imitation zari thread or yarn to attract 5% GST: CBIC

According to a circular issued by the CBIC, the GST Council had suggested a reduction in GST to * per cent on imitation zari thread or yarn, leading to the insertion of SI No. ***AA in Schedule I of notification no */****. Subsequent queries arose on whether metal-coated film converted to metallised yarn and twisted with nylon, cotton, polyester, or any other yarn to make imitation zari thread would attract the * per cent GST, or if it would fall under SI No *** of Schedule III, which covers other metallised yarns attracting ** per cent GST. 

In response, the GST Council recommended fixing the GST for imitation zari at * per cent in its **^nd meeting on October *, ****, based on the HS explanatory notes. Furthermore, the CBIC clarified that the Council also recommended disallowing refunds on polyester film (metallised)/plastic film due to the inversion of the tax rate. The necessary amendments were made in notification no */****- Central Tax (Rate) through notification no **/***-Central Tax (Rate) on October **, ****.