GST Rate for Men's Pyjama Sets in Multi-Piece Packs
The Tamil Nadu Authority for Advance Ruling clarified that GST rates for apparel sets are determined by the value of individual units.
- Ruling
- Advance Ruling No.42/AAR/2025, dated 08.10.2025
- Dated
- 08 Oct 2025
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Link Up Textiles asked for the correct HSN code and GST rate.
- The authority classified men's pyjama sets under HSN code 620721.
- Individual sets priced under Rs. 1000 qualify for a 5% GST rate.
- The total pack value does not determine the tax rate.
In short
The company asked whether selling two pyjama sets in one package changes the GST rate if the total pack costs more than Rs. 1000. The authority looked at whether the tax is based on the whole package or the individual set inside it.
What has changed
How it worked before
Businesses were often unsure if the total invoice value of a multi-piece pack or the value of the individual items inside determined the applicable GST tax slab.
What has changed
The authority ruled that the taxable value is calculated per individual set, not the total pack price. This means if one set costs less than Rs. 1000, it qualifies for the 5% rate even if the combined pack costs more.
Who this affects
Apparel manufacturers and retailers who sell clothing in multi-piece sets or gift packs.
An example
Imagine a clothing brand sells a 'Family Pack' containing three individual pyjama sets for Rs. 2500. Each set is worth Rs. 833. Based on this ruling, the brand can argue that each set is under the Rs. 1000 limit and should be taxed at 5% rather than the higher rate for luxury apparel.
What you should do
Review your product pricing to see if individual items within your sets fall below the Rs. 1000 threshold. Remember that an Advance Ruling only binds the business that requested it and their specific tax office; it is not a universal law for all taxpayers.
If you do nothing
If you apply this ruling to your own business without checking with your local tax officer, you risk underpaying your GST. If an audit finds you used the wrong rate, you will be liable for the unpaid tax, interest, and potential penalties.
The terms explained
- HSN Code
- A standardized system of numbers used to classify goods for customs and tax purposes.
- Advance Ruling
- A formal decision from tax authorities on how GST laws apply to a specific business situation.
- Taxable Value
- The amount of money on which the tax is calculated.
The ruling in detail
Authority for Advance Ruling
M/s. LINK UP TEXTILES PRIVATE LIMITED
Advance Ruling No.42/AAR/2025, dated 08.10.2025 · Tamil Nadu
Questions before the authority
- Under which HSN Code should men's pyjama sets with above mentioned description to be classified?
- What is the applicable GST rate on such men's pyjama sets which are packed in 2 sets as per their buyer's instruction and the cost of such packed pyjama sets costs more than Rs. 1000.
Facts
The applicant manufactures and exports men's pyjama sets consisting of a top and bottom made of cotton, polyester, and spandex. They pack these items in sets of two (two shirts and two pants) per single pack for their overseas buyers. The applicant sought a ruling on the correct HSN classification and the applicable GST rate for these sets.
Ruling
| Question | What the authority ruled |
|---|---|
| HSN Classification | HSN code 620721 Applies to men's pyjama sets made of cotton |
| Applicable GST Rate | 5% (CGST 2.5% + SGST 2.5%) Applicable because the value per piece is less than Rs. 1000 |
The Authority ruled that the men's pyjama sets are to be classified under HSN code 620721. It further determined that because the price of a single pyjama set (one shirt and one pant) is less than Rs. 1000, the goods qualify for the lower GST rate of 5% under the specified notification.
Reasoning
The Authority determined that the 'piece' for tax purposes is a single set of one shirt and one pant, as these are independently usable apparel. Since the price of one such set is Rs. 686, it falls below the Rs. 1000 threshold specified in Notification no. 01/2017-Central Tax (Rate). Consequently, the goods are covered under Schedule I of the notification, attracting a 5% GST rate. The classification under HSN 620721 was confirmed based on the composition of the garments.
Provisions relied on
- Section 97(2) of the CGST Act, 2017
- Section 98(4) of the CGST Act, 2017
- Section 103(1) of the CGST Act, 2017
- Notification no. 01/2017-Central Tax (Rate) dated 28.06.2017
For the practitioner
This ruling clarifies that for multi-piece packs, the **taxable value per piece** is the determining factor for GST rate slabs rather than the total invoice value of the pack. It provides a precedent for manufacturers of apparel sets to calculate the value of individual units to avail of lower tax rates. It does not apply to goods where the individual unit value exceeds the Rs. 1000 threshold.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/link_up_textiles_aar_order.pdf
Legibility of the scan, as read: high.
Prepared 15-10-2026.
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