Branded readymade garments become more expensive- (Ministry of Finance ) (14 Jun 2016)

MANU/EXCR/0020/2016

Excise

Affixing a brand name on or relabelling a readymade garment or article with a retail sale price of Rs. 1000 will amount to manufacture and render the item to excise duty, the Ministry of Finance clarified.

The Central Board of Excise and Customs had received representations from trade raising concerns whether excise duty would be chargeable on readymade garments or made up articles of textiles which are sold by a retail store which only affixes the retail sale price.

The 2016-2017 Budget levied excise duty of readymade garments and articles bearing a brand name, or sold under a brand, exceeding Rs. 1000 in sale price. The Finance Bill 2016 had recommended a duty of two per cent (or 12.5 per cent with CENVAT Credit) be imposed.

Relevant : Rates of duty prescribed in Finance Bill 2016

Tags : EXCISE READYMADE GARMENTS MANUFACTURE