Raw silk, Silk cocoon and Silk waste are exempted from tax.
Other silk items are taxed at 5%, with full Input tax credit, however refund of excess ITC is not available.
Exempted from tax:
1. Silkworm laying, cocoon [5001]
2. Raw silk [5002]
3. Silk waste [5003]
Taxed at 5% with full ITC (No refund):
1. Silk yarn [5004, 5005, 5006]
2. Woven fabrics of silk or silk waste [5007] [With no refund of ITC accumulation]
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