In re Tvl. Link Up Textiles Private Limited (GST AAR Tamilnadu)
The Authority for Advance Ruling (AAR), Tamil Nadu, delivered a ruling in the matter of Tvl. Link Up Textiles Private Limited concerning the correct Harmonized System of Nomenclature (HSN) classification and the applicable Goods and Services Tax (GST) rate for men’s woven pyjama sets supplied for export.
Applicant’s Case and Product Details
M/s. Link Up Textiles Private Limited, an exporter, sought clarification on the classification and GST rate for a Men’s Pyjama Set. The product consists of a top (Kurta/Shirt) and a bottom (Pyjama/Trouser), both made of a woven cotton blend (67% Cotton, 29% Polyester, 4% Spandex). The company exports these sets packaged as two sets per pack according to buyer instructions. While the applicant initially used HSN 6107 (for knitted garments) and applied a 12% IGST rate, they sought a definitive ruling, believing the product should fall under Chapter 62 (for woven garments) and potentially be subject to the lower 5% GST rate since the value of one individual set was less than ₹1,000, even though the two-set pack exceeded that threshold. The price of the single pack (two pyjama sets) was ₹1,371/-.
HSN Classification
The AAR examined the composition of the garments, noting that both the top and the bottom were woven fabrics made predominantly of cotton. Based on this, the Authority ruled that the product is correctly classified under HSN Code 620721. This HSN specifically covers “Men’s or boys… nightshirts and pyjamas: of cotton,” falling under Chapter 62 for “Articles of Apparels and clothing accessories, not knitted or crocheted.” The Authority noted that the applicant had, at times, used HSN 620721.90 and 61072100 in their documents. The ruling definitively settled the classification under HSN 620721.
