Orange alert as rain leaves Gurugram waterlogged; disrupts traffic The Sector 52A market was among the most affected areas, with visuals showing commuters wading through knee-deep water Published on: Aug 24, 2026, 14:14:38 IST By Sampurna Panigrahi, Mihika Shah
‘Buy buy buy!’: Foreign tourist reacts to duty-free shopping after Delhi immigration A foreign tourist has posted a video of his Delhi airport experience, questioning the shopping pitches he encountered just after immigration. Published on: Aug 24, 2026
India security chief visits China for border talks India security chief visits China for border talks Published on: Aug 24, 2026, 14:06:38 IST AFP Prefer HTon Google Share via Copy link India's top security official arrived in Beijing on Monday for talks on the countries' disputed Himalayan border
Twenty-one former international cricket captains, including India’s Sunil Gavaskar, Kapil Dev and Dilip Vengsarkar, on Sunday urged Pakistan to ensure that former Prime Minister Imran Khan is examined by a medical board, as directed by the country’s Supreme Court, The Hindu reported
A 25-year-old entrepreneur with a net worth of around ₹4.35 crore has turned to Reddit for advice after a sharp decline in the business that helped him build his fortune. Despite his wealth, he says he is now unsure about what to do next and feels “completely lost
Not a chief guests, celebrity or VIP, but a humanoid robot stole the spotlight at a sandwich shop inauguration. A video from the celebratory event has gone viral, where the robot was seen arriving at the venue with bodyguards. It then proceeded to greet guests and even broke into a dance
‘Jo bhi hai, tera ghar hai’: American compares Indian and US hospitality An American Hindi speaker’s take on Indian hospitality has viewers discussing the differences between socialising in India and the US. Published on: Aug 24, 2026, 13:31:09 IST By Vaishali Kapila Prefer HTon Google Share
Manipur: 1 CRPF personnel injured, 2 houses burnt by unknown armed individuals The gunfight broke out after two houses belonging to separate communities were set ablaze by an unidentified group of people Published on: Aug 24, 2026, 13:49:38 IST By Thomas Ngangom
GST depends on each item
GST depends on each item, Not the combo pack: Tax Authority Rules
The ruling establishes a clear principle: the method of packaging has no bearing on how tax is calculated. Each item inside a combo pack retains its individual identity, and GST is applied to the value of each individual unit, not to the total value of the pack as a whole.
New Delhi: A clothing company in Tamil Nadu tried to argue that selling two pyjama sets in one package should change how GST is calculated on the combined product. A tax authority has firmly rejected that argument — and the ruling has implications for every business in India that sells combo packs, bundled products, or multi-unit retail packages.
Case details
Case name: M/s Link Up Textiles Private Limited
Authority: Appellate Authority for Advance Ruling, Tamil Nadu
Date of ruling: March 9, 2026
What the company was doing
Link Up Textiles Private Limited manufactures and sells men’s pyjama sets. Each set consists of one shirt and one matching pant sold together as a pair. The company’s standard retail practice was to pack two of these sets into a single package and sell the combined unit as one product.
The company’s argument to the tax authority was straightforward: since the two sets were physically packaged together and sold as a single unit, GST should be applied to the total value of the combined pack rather than to each individual set separately.
The practical motivation behind this argument is easy to understand. GST on clothing in India is applied at different rates depending on the price of the item. Products priced below a certain threshold attract a lower rate of five percent. If two sets together can be treated as one product for tax purposes, it becomes possible to keep the effective per-unit tax rate lower even when the combined pack value is higher.
What the authority ruled
The Tamil Nadu Appellate Authority for Advance Ruling rejected the company’s position entirely. In its March 9 ruling, the authority held that each pyjama set is an independent retail unit with its own distinct identity. The fact that two units are placed inside the same outer packaging does not merge them into a single product for the purposes of calculating GST.
The ruling establishes a clear principle: the method of packaging has no bearing on how tax is calculated. Each item inside a combo pack retains its individual identity, and GST is applied to the value of each individual unit, not to the total value of the pack as a whole.
How the tax calculation actually works
The ruling becomes clearer with concrete examples drawn from the case.
If one pyjama set is priced at Rs 1,250 and two sets are packed together and sold for Rs 2,500, GST is calculated on Rs 1,250 per set — not on the Rs 2,500 combined price. Since each individual set falls within the lower GST slab, the five percent rate applies to each unit separately.
If one set is priced at Rs 1,200 and the combined pack sells for Rs 2,400, the same logic applies. Even though the combined pack value exceeds Rs 2,000, the tax authority looks at each set individually at Rs 1,200, and the lower five percent rate continues to apply to each unit.
However, if one set is priced at Rs 1,500 — meaning each individual unit crosses the threshold for the higher GST slab — then the higher rate applies to each set individually, regardless of how they are packaged or what the combined pack price is.
The direction of effect works both ways. Bundling cannot be used to push a product into a lower tax bracket, but it also cannot push it into a higher one. The individual unit value is the only figure that matters.
Why this ruling matters beyond one company
The significance of this decision extends well beyond Link Up Textiles and pyjama sets. Any business in India that sells combo packs, multi-unit bundles, or promotional packages needs to understand what this ruling confirms.
The practice of combining products into a single package and then seeking to apply GST on the total combined price rather than the individual component prices is not a legitimate tax planning strategy. The GST system looks through the packaging to the individual product inside. Retailers in clothing, personal care, food, electronics accessories, and any other sector where bundling is common practice will need to ensure their billing and invoicing reflects individual unit values rather than composite pack prices.
From a compliance standpoint, the message is unambiguous: bill correctly for each item inside a bundle, apply the applicable GST rate to each unit individually, and do not assume that the outer packaging creates a new or different taxable entity.
The bottom line
The Tamil Nadu Appellate Authority for Advance Ruling has confirmed what the GST framework always intended: tax follows the product, not the packaging. Selling two items together is entirely permissible. Calculating tax as though those two items have become one is not.
Source: Zeenews.india.com
Related Posts: Latest News
No need to panic over H1N1 surge in K'taka: Minister Khader No need to panic over H1N1 surge in K'taka: Minister Khader Published on: Aug 24, 2026, 13:51:09 IST PTI Prefer HTon Google Share via Copy link Bengaluru, Karnataka Health Minister U T Khader on Monday assured the public that there was no
8 hours ago
‘You endorse misogyny, cut the crap’: Shehzad Poonawalla joins BJP attack on Rahul Gandhi's ‘smash patriarchy’ call Shehzad Poonawalla and BJP were responding to Rahul Gandhi's call to "smash the patriarchy" during his party's 'Chhatro ki Goonj' programme in Pune. Updated on: Aug 24, 2026
11 hours ago
For Delhi-NCR residents, Guleria struck a reassuring note while explaining why this year’s wave has felt worse, but citizens need not panic The H1N1 virus driving Delhi-NCR’s current flu surge appears to be changing its structure — a process that is making it spread faster and slip past the
11 hours ago
A job applicant’s unusual rejection from a software engineering internship has left the internet divided after the candidate was reportedly turned down over the name of their resume file. The incident was highlighted in a now-viral post on X by user @adnaannasir_
11 hours ago
Elderly woman killed, husband injured in SUV hit-and-run at Delhi's posh GK-1 The woman, identified as Shashi, was declared brought dead at the hospital, while her husband Kulbhushan (65), was left injured. Published on: Aug 24, 2026, 11:00:26 IST By HT News Desk Prefer HTon Google Share via Copy
11 hours ago
Woman reflects on high-rise living in big cities: ‘Even the slice of the sky is fixed for us’ A woman shared her thoughts on high-rise life, saying big-city living can feel confined despite better work opportunities. Published on: Aug 24, 2026
11 hours ago
Governor Abdullah Sarhadi gives money to treat a boy's broken arm and hands out funds for a local mosque - then, in his office in northern Afghanistan, an astonishing exchange unfolds. A young woman tells the grey-bearded former Taliban commander that she wants to divorce her husband
11 hours ago
Andy Burnham is marking his first foreign visit as prime minister with a trip to Kyiv - and will hand over blueprints so Ukraine can build its own long-range missiles. The prime minister will chair his first meeting of the "coalition of the willing"
11 hours ago
Apple’s next iPhone launch is getting closer, and the company’s usual September schedule is beginning to take shape. According to a recent Forbes report, Apple could hold its special event on Wednesday, September 9, where it is expected to introduce the iPhone 18 Pro and iPhone 18 Pro Max
11 hours ago
Fugitive gangster Goldy Brar has, in an audio clip, purportedly claimed responsibility for the killing of Khalistani separatist leader Hardeep Singh Nijjar in Canada, The Indian Express reported. The newspaper said it could not independently verify the authenticity of the audio clip
11 hours ago
Dad crashes daughter’s late-night work meeting over parcels: ‘Ek paise ki saving nahi karti’ A father’s surprise appearance during his daughter’s work call turns into a lecture on spending and saving. Updated on: Aug 24, 2026, 10:56:44 IST By Vaishali Kapila Prefer HTon Google Share via
11 hours ago
A Zimbabwean content creator’s tongue-in-cheek take on life in India has caught the attention of social media users after he shared 10 everyday conveniences that have completely changed his standard of living. From paying for almost everything with just a phone to having food
11 hours ago
Starting September 1, passengers traveling internationally will be required to use an e-boarding pass on their smartphones for immigration clearance, as announced by immigration authorities. This significant change comes as the Bureau of Immigration (BOI)
14 hours ago
The September 2026 US Visa Bulletin brings a mixed picture for Indian green card applicants. While some family-sponsored categories have moved forward, several employment-based categories remain severely constrained, with two India-specific categories listed as unavailable and the State Department
14 hours ago
The Maharashtra Transport Department has issued notices to 777 drivers for lacking practical knowledge of Marathi, The Hindu quoted unidentified officials as saying on Saturday. A total of 5,211 drivers were tested during a statewide inspection campaign that began on August 20, including 3
14 hours ago
19-year-old killed, friend injured after truck hits motorcycle on Delhi's Indraprastha flyover A police team reached the spot and found a motorcycle lying in a damaged condition and two people seriously injured. One of them died in the hospital. Updated on: Aug 24, 2026
14 hours ago
Indian woman reveals why her family returned to India after 13 years in US: ‘You don’t really belong here’ A woman shared five reasons her family decided to leave the US and return to India after 13 years. Published on: Aug 24, 2026, 07:43:56 IST By Mahipal Singh Chouhan Prefer HTon Google
14 hours ago
New UK PM Andy Burnham to make visit to Kyiv on Monday: office New UK PM Andy Burnham to make visit to Kyiv on Monday: office Updated on: Aug 24, 2026, 07:41:28 IST AFP Prefer HTon Google Share via Copy link British Prime Minister Andy Burnham will visit Kyiv on Monday on his first international
14 hours ago
Bengaluru vs Gurgaon? Man who lived in both cities explains why the comparison is ‘completely pointless’ A man said the Bengaluru versus Gurgaon debate was pointless and urged people to live in both cities before deciding. Published on: Aug 24, 2026
14 hours ago
Circle Wealth CIO and Managing Partner Chadha said the market was rewarding companies with strong earnings and improving outlooks, even as large-cap stocks remained under pressure. Diwali season is expected to bring a fresh boost for Indian equities following strong corporate earnings
14 hours ago
The restriction was imposed under Section 26A of the Drugs and Cosmetics Act, 1940, which governs the import, manufacture, distribution, and sale of drugs and cosmetics. The central government on Saturday restricted the manufacturing, sale and distribution of all fixed-dose combinations (FDCs)
14 hours ago
Ukraine backers gather as war escalates, air defence runs low Ukraine backers gather as war escalates, air defence runs low Updated on: Aug 24, 2026, 07:41:29 IST AFP Prefer HTon Google Share via Copy link Ukraine on Monday hosts a meeting of its key European backers to press for critical
14 hours ago
'Trouble proving citizenship after representing India in 3 countries': Ex-envoy to ECI over Punjab SIR Suri served as India’s ambassador to the UAE and Egypt and high commissioner to Australia. Updated on: Aug 24, 2026, 07:34:33 IST By HT Correspondent Prefer HTon Google Share via Copy link
14 hours ago
2 killed after illegal building in Hyderabad's Gachibowli caves in Officials alleged that the building was built over or adjacent to a drain without the required permissions. Published on: Aug 23, 2026, 14:41:02 IST By Srinivasa Rao Apparasu Prefer HTon Google Share via Copy link At least two
1 days ago
J'khand: Compensation of ₹31 lakh each given to families of 3 engineers burnt alive at steel plant J'khand: Compensation of ₹31 lakh each given to families of 3 engineers burnt alive at steel plant Published on: Aug 23, 2026, 14:43:04 IST PTI Prefer HTon Google Share via Copy link Ramgarh
1 days ago
Jaiñtia Hills to the G7: Can Meghalaya turn ‘Lakadong’ into a global brand? The high-curcumin turmeric has gone from an obscure hill crop to a GI-tagged premium product showcased before world leaders. Updated on: Aug 23, 2026, 14:48:20 IST By David Laitphlang
1 days ago
Ex-NRI shares why she takes auto for 1 km ride to gym after moving to India: 'Life here is a compromise' The woman shared that she has to walk through an area where "everybody stares", while the pathway is "ubad-khabad", dirty and encroached. Updated on: Aug 23, 2026
1 days ago
