Case Details: Link up Textiles (P.) Ltd., In re - [2025] 180 taxmann.com 25 (AAR-TAMILNADU)
Judiciary and Counsel Details
- C. Thiyagarajan & B. Suseel Kumar, Member
Facts of the Case
The applicant was a GST-registered exporter, supplied made-to-order men’s pyjama sets comprising woven tops and bottoms predominantly of cotton to overseas buyers. The sets were packed two per pack as per buyer specifications, with no domestic sales due to intellectual property restrictions. Earlier invoices showed HSN 61072100 and 6207 with IGST at 12%. The applicant sought an advance ruling on the correct HSN classification and the applicable GST rate, submitting that each set should be treated as a single piece for valuation and that the lower 5% rate should apply. The matter was accordingly placed before the Authority for Advance Ruling (AAR).
AAR Held
The AAR held that the goods supplied by the applicant are men’s nightwear or pyjama sets consisting of woven shirts and pants predominantly made of cotton, and are therefore correctly classifiable under HSN 620721, which covers nightshirts and pyjamas of cotton. It was observed that each pyjama set, comprising one shirt and one pant, should be treated as a single independently usable piece for GST purposes, even when packed in multi-set packages. The ruling provides guidance on proper HSN classification and the per-piece approach for valuing exported apparel, offering clarity for exporters and GST authorities in future compliance.
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