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Key Highlights
- The applicability of GST on clothes, apparel, and accessories depends on the type of the finished goods and their value.
- The clothes bill with GST reflects the details of the applicable GST, ensuring transparency and compliance with the applicable laws.
- The GST on clothes, apparel, accessories and textile materials is available on the official website of Central Board of Indirect Taxes and Customs .
The textile industry is one of the oldest and largest industries, contributing to the growth of the Indian economy. Employing both skilled and unskilled labourers, the industry plays a crucial role in generating employment.In this blog, you will explore the textile industry through the lens of GST (goods and services tax) , including its applicability, rate and the respective HSN (harmonised system of nomenclature) codes. Also Read: How Does GST Work in India?
GST on Clothes, Apparel, and Accessories
The applicability of GST on clothes, apparel, and accessories depends on the type of the finished goods and their value. The clothes bill with GST reflects the details of the applicable GST, ensuring transparency and compliance with the applicable laws.Here is a tabulation of some key rates of GST on clothes and apparel, along with the chapters of HSN codes. For the complete list, visit the official website of Central Board of Indirect Taxes and Customs . Chapter/Heading/Sub-Heading/ Tariff Item*1 Description IGST*2 61 or 6501
or 6505
Articles of apparel and clothing accessories or caps/ topi , knitted or crocheted, of sale value not exceeding ₹1000 per piece.
5%
62
Articles of apparel and clothing accessories, not knitted or crocheted, of a sale value not exceeding ₹1000 per piece.
5%
63 (other than 6305 32 00, 6309)
Other made-up textile articles and sets, of sale value not exceeding ₹1000 per piece.
5%
6117, 6214
Handmade/hand-embroidered shawls of sale value not exceeding ₹1000 per piece.
5%
6309 or 6310
Worn clothing and other worn articles; rags.
5%
61
Articles of apparel and clothing accessories, knitted or crocheted, of a sale value exceeding ₹1000 per piece.
12%
62
Articles of apparel and clothing accessories, not knitted or crocheted, of a sale value exceeding ₹1000 per piece.
12%
63 (other than
6309)
Other made-up textile articles, sets of sale value exceeding ₹1000 per piece other than worn clothing and other worn articles; rags.
12% Source: https://cbic-gst.gov.in/gst-goods-services-rates.html *1 Get the respective HSN code details at https://services.gst.gov.in/services/searchhsnsac *2 IGST (Integrated Goods and Services Tax) = CGST (Central Goods and Services Tax) + SGST (State Goods and Services Tax)
GST on Textile Materials
Now that we have covered GST on clothes, we will explore GST on textile materials. This section covers the GST specifics for different types of GST textile materials. You can view the complete list on the official website of Central Board of Indirect Taxes and Customs .
| Chapter/Heading/Sub-Heading/ Tariff Item*1 | Description | IGST*2 |
| 5004 to 5006 | Silk yarn. | 5% |
| 5007 | Woven fabrics of silk or of silk waste. | 5% |
| 5104 | Garnetedstock of wool, fineorcoarseanimalhair, shoddy wool. | 5% |
| 5105 | Wool and fine or coarse animal hair, carded or combed. | 5% |
| 5106 to 5110 | Yarn of wool or animal hair. | 5% |
| 5111 to 5113 | Woven fabrics of wool or animal hair. | 5% |
| 5201 to 5203 | Cotton and cotton waste | 5% |
| 5204 | Cotton sewing thread, whether or not put up for retail sale. | 5% |
| 5205 to 5207 | Cotton yarn other than khadi yarn. | 5% |
| 5208 to 5212 | Woven fabrics of cotton. | 5% |
| 5301 | All goods i.e. flax, raw or processed but not spun; flax tow and waste including yarn waste and garneted stock. | 5% |
| 5303 | All goods i.e. textile bast fibres other than jute fibres, raw or processed but not spun; tow and waste of these fibres, including yarn waste and garneted stock. | 5% |
| 5305 to 5308 | All goods other than coconut coir fibre, including yarn of flax, jute, other textile bast fibres, other vegetable textile fibres; paper yarn, including coir pith compost pre-packaged and labelled. | 5% |
| 5309 to 5311 | Woven fabrics of vegetable textile fibres, paper yarn. | 5% |
| 5407, 5408 | Woven fabrics of manmade textile materials. | 5% |
| 5512 to 5516 | Woven fabrics of manmade staple fibres. | 5% |
| 5605 00 10 | Real zari thread(gold)andsilverthread combined with textile thread. | 5% |
| 5607 | Jute twine, coir cordage or ropes. | 5% |
| 5608 | Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials. | 5% |
| 5609 | Products of coir. | 5% |
| 5702,5703,5705 | Coir mats, matting, floor covering and handloom durries. | 5% |
| 5806 | Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs). | 5% |
| 60 | Knitted or crocheted fabrics (All goods). | 5% |
Source: https://cbic-gst.gov.in/gst-goods-services-rates.html *1 Get the respective HSN code details at https://services.gst.gov.in/services/searchhsnsac *2 IGST (Integrated Goods and Services Tax) = CGST (Central Goods and Services Tax) + SGST (State Goods and Services Tax)
Comply with GST Regulations to Avoid Penalties
If you are a business person, calculate your GST on clothes accurately at the applicable rates and file your returns within the stipulated time. An online GST calculator can be helpful here. Also, ensure the clothes bill with GST reflects the relevant details, complying with the requisite regulations.Just like GST regulatory compliance, meeting daily business expenses like salaries, vendor payments, etc., is equally important. In times of financial constraints, a working capital loan from a reputed financial institution like Aditya Birla Capital can ensure smooth business operations and maintain the trust of all stakeholders. Reach out to an Aditya Birla Capital representative today.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the rate of GST on clothes
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Where is the list of GST rates available?
The official website of Central Board of Indirect Taxes and Customs lists the applicable rate of GST on clothes, apparel, accessories, textile materials, etc.
I recently purchased clothes. Where can I find the rate of GST charged?
The clothes bill with GST is an invoice reflecting the applicable GST on clothes, ensuring transparency and compliance with the applicable laws.
I made multiple purchases last month; where can I check the rate of GST on clothes for each transaction?
Go to the respective clothes bill with GST of each transaction to know the respective tax rates.
I have my clothes bill with GST. How can I verify if the GST rate mentioned therein is correct as per law?
You can verify the rate mentioned on the clothes bill with GST from the official website of Central Board of Indirect Taxes and Customs.
Is GST payable on textile materials?
Yes. To know the list of textile materials subject to GST, visit the official website of Central Board of Indirect Taxes and Customs.
Why does the clothes bill with GST usually reflect different rates for different items purchased?
Since the rate of GST depends on the type of the finished good and its value, your clothes bill with GST may reflect different rates for different items purchased.
What is the full form of the HSN code?
HSN stands for harmonised system of nomenclature.
Where is the HSN code available?
You get the applicable HSN code details on Central Board of Indirect Taxes and Customs website.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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