Mandatory 10% Levy Replaces Optional Levy for Readymade Garments

For readymade garments and made-ups of textiles, the optional levy has been converted into a mandatory levy at a unified rate of 10%. The levy would however, apply only to branded garments or made-ups and not to those tailored or made to order for a retail customer. Credit of tax paid on inputs, capital goods and input services would be available to manufacturers of these products.

Export o these items would continued to be zero-rated.

Source : Equity Bulls

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