The Gujarat Authority for Advance Ruling has held that imitation zari thread or yarn manufactured from metallised polyester or plastic film containing aluminium metal is liable to 5 percent GST. The decision was delivered on November 29, 2025 by Member (Central Tax) Vishal Malani and Member (State Tax) Sushma Vora in an application filed by M/s. Sai Ram Jari Industries, Surat.
The applicant had sought clarity on the tax rate applicable to imitation zari made from lacquer-coated polyester or plastic film with aluminium metal. The authority noted that the market offers several types of zari, including real zari made from gold or silver, imitation zari made from aluminium or copper, and metallic zari produced from slitted polyester metallised film. The ruling observed that rising gold and silver prices have led manufacturers to adopt lighter and more affordable alternatives, which are commonly used in sarees and dress materials as substitutes for real zari.
In its reasoning, the AAR referred to the 52nd GST Council Meeting, which recommended rate rationalisation for imitation zari under HSN 5605. It cited Serial No. 218AA, introduced through Notification No. 09/2023 dated July 26, 2023, which consolidated the GST rate for metallised yarn, including both real and imitation zari, at 5 percent. This replaced the earlier 12 percent rate applicable under Serial No. 137.
The ruling also relied on Circular No. 205/17/2023-GST dated October 31, 2023, which clarified that imitation zari made from metallised polyester or plastic film is classifiable under HSN 5605 and taxable at 5 percent. The same position appears in the HSN-wise GST rate chart notified through Notification No. 09/2025-CT(R) dated September 17, 2025, effective from September 22, 2025.
Based on these references, the Gujarat AAR held that imitation zari yarn manufactured using polyester or plastic film with aluminium metal is classifiable under HSN 56050020 and attracts 5 percent GST following rate rationalisation. The application was disposed of accordingly.
Applicant: M/s. Sai Ram Jari Industries, Plot No. A/235, GIDC Sachin, Surat
Advance Ruling No. GUJ/GAAR/R/2025/58
Application No. Advance Ruling/SGST&CGST/2024/AR/20
