What is the status of excise duty on branded readymade garme

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2015 Dear All
Please tell me what is the status of excise duty on branded readymade garments (like abatement,Duty rate ect.)

Arun Kumar Singh

Arun Kumar Singh (Expert)
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30 October 2015 The excise duty is exempt from branded garments.

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2015 but as per excise Chapter 60, 61-62 tax rate is 12.5% and abatement 70%

Arun Kumar Singh

Arun Kumar Singh (Expert)
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30 October 2015 Yes, Abatement was 70% on branded RMG.

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2015 If abatement was 70% on Readymade garment (Barnded)and Tax Rate 12.5% as excise chapter 60/61/62

sir
why are you saying this is exempt

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2025 Regarding excise duty on branded readymade garments, here is the clarification:

Earlier (before GST), excise duty was applicable on branded readymade garments falling under Chapter 60, 61, and 62 of the Central Excise Tariff.

The excise duty rate was 12.5%, but a 70% abatement was allowed on the assessable value for excise duty calculation.
This means excise duty was effectively charged on 30% of the sale price.

However, in many cases, garments were also exempt from excise duty under certain notifications or thresholds, especially for small manufacturers or under specific schemes.

Post-GST (after July 2017), excise duty on garments has been subsumed under GST, and now the applicable GST rates are charged instead of excise.

Summary:
Before GST:

Branded readymade garments had excise duty @12.5% with 70% abatement (so duty on 30% of value).

Some exemptions applied depending on notifications.

After GST:

Excise duty is not applicable; GST applies as per current rates.

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