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Key Highlights
- Men's shirts attract 5% GST if priced up to ₹1,000 per piece and 12% GST if the price exceeds ₹1,000. This classification helps regulate taxation based on affordability.
- The HSN code for men's shirts falls under Chapter 61, with the primary code being 6105 for knitted or crocheted shirts. Further sub-codes like 610510 (cotton shirts) and 610520 (man-made fibres) help in tax compliance.
- Businesses must charge GST based on pricing and can claim input tax credit (ITC) on raw materials like fabric and accessories. Proper compliance ensures smooth tax filing and avoids penalties.
You are running a clothing business and just secured a bulk order for men’s shirts. You are excited about the profit potential, but confusion strikes when it comes to invoicing and knowing the correct GST rate? Which HSN code should you use? Getting this wrong could mean legal trouble or financial losses.Understanding the goods and services tax (GST) rates and harmonised system of nomenclature (HSN) codes is crucial if you're a retailer, manufacturer, or distributor dealing in men's shirts.
What is GST and Why Does It Matter for Men’s Shirts?
GST is a single tax applicable to the supply of goods and services across India. It replaced multiple taxes like VAT, excise duty, and service tax. For men’s shirts, GST ensures transparency in pricing and prevents double taxation.For example, before GST, you paid excise duty if you bought raw fabric. When stitching the shirt, you paid VAT. Now, a single tax applies, reducing cascading effects. However, different tax slabs apply based on fabric type and price, making understanding the correct GST rates essential.
Classifying Men’s Shirts Based on HSN Codes
Men's shirts are classified under Chapter 61. It attracts a lower rate, mentioned in the following table if priced up to ₹1,000 per piece, and a higher GST rate, mentioned below, if the price exceeds ₹1,000. Here are the details:
| Description | HSN Code | Rate |
| Men's or boys' shirts, knitted or crocheted. | 6105 | 5% 12% |
| Of Cotton | 610510 | 5% 12% |
| Men's or boys' shirts, knitted or crocheted – made of cotton: hand-crocheted shirts. | 61051010 | 5% 12% |
| Men's or boys' shirts, knitted or crocheted: of cotton: knit shirts (excluding T-shirts) and sweatshirts, excluding hand-crocheted ones. | 61051020 | 5% 12% |
| Men’s or boys’ shirts, knitted or crocheted, made of cotton – other | 61051090 | 5% 12% |
| Of man-made fibres | 610520 | 5% 12% |
| Men’s or boys’ shirts, knitted or crocheted, made from man-made fibres – composed of synthetic fibres | 61052010 | 5% 12% |
| Men’s or boys’ shirts, knitted or crocheted, made from man-made fibres – composed of artificial fibres | 61052020 | 5% 12% |
| Of other textile materials | 610590 | 5% 12% |
| Men's or boys' shirts, knitted or crocheted – made from other textile materials: composed of silk | 61059010 | 5% 12% |
| Men’s or boys’ shirts, knitted or crocheted – made from other textile materials: other | 61059090 | 5% 12% |
GST and HSN Codes Made Simple
Understanding the GST rates and HSN codes for men's shirts is essential for smooth business operations. Proper classification ensures accurate taxation and compliance if you're a retailer, manufacturer, or exporter. Staying updated on GST rules helps in pricing products correctly and claiming input tax credits. By following the correct tax structure, businesses can avoid legal issues and maximise profits. Keeping track of rate changes and exemptions will further streamline your invoicing and financial planning. Stay informed, stay compliant, and grow your business seamlessly.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the GST rate applicable to men's shirts?
The GST rate on men's shirts, whether knitted or crocheted, varies from 5% to 12%, depending on the product's value. Generally, garments with a taxable value of up to ₹1,000 per piece attract 5% GST, while those priced above ₹1,000 per piece attract 12% GST per the revised rates.
What is the HSN code for men’s shirts?
The HSN code for men's shirts varies based on whether the fabric is knitted or not. For knitted or crocheted shirts, the HSN code is 61, while for non-knitted shirts, the HSN code is 62. These codes help in identifying the product category for taxation and compliance purposes.
How does GST affect manufacturers and retailers of men's shirts?
Manufacturers and retailers must charge GST based on the price of the shirts they sell. They can claim an input tax credit (ITC) on the GST paid for raw materials like fabric and accessories. Compliance with GST rules ensures proper tax filing and helps avoid penalties for non-compliance.
Are second-hand or used men's shirts taxed under GST?
Yes, worn or second-hand clothing, including men's shirts, falls under HSN code 6309 or 6310 and is taxed at 5% GST. However, tax may not be applicable if sold by unregistered individuals or small businesses below the GST threshold.
What GST rules apply to businesses exporting men’s shirts?
Exports of men’s shirts are classified as zero-rated supplies under GST. That means exporters do not have to charge GST to international buyers. However, they can claim a refund on the GST paid for raw materials and input costs used in manufacturing the shirts.
How is GST calculated on men’s shirts?
GST on men's shirts is calculated based on the final selling price. For example, if a shirt is priced at ₹900, the GST applicable at 5% will be ₹45, making the total price ₹945. If a shirt costs ₹1,200, the GST at 12% will be ₹144, making the total price ₹1,344.
Are discounts considered when applying GST on men’s shirts?
If a discount is applied before billing, GST is calculated on the discounted price. For example, if a shirt originally priced at ₹1,200 is sold at ₹950 after a discount, it attracts 5% GST instead of 12%. However, post-sale discounts do not reduce GST liability.
Are linen or silk men’s shirts taxed differently?
No, linen and silk men’s shirts follow the same GST rate structure based on price. However, raw silk and raw jute are exempt from GST, whereas silk yarn and fabrics attract a 5% GST rate before being used to manufacture shirts.
Can businesses selling men’s shirts opt for the GST composition scheme?
Yes, if you sell men’s shirts, you can opt for the GST composition scheme if your annual turnover is below ₹1.5 crore (₹75 lakhs in northeastern states). Under this scheme, you pay a lower fixed GST rate, but cannot charge GST separately on invoices.
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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