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Key Highlights
- Women’s suits and ensembles are classified under HSN Code 6104 (knitted) or 6204 (woven).
- The GST rate is either 5% or 12%, depending on the price of the garment.
- Garments priced at or below ₹1,000 per unit attract 5% GST, while those priced above ₹1,000 per unit are taxed at 12% GST.
- Businesses can claim the input tax credit (ITC) on GST paid for raw materials and inputs.
- Proper HSN classification is essential to avoid tax disputes and penalties.
Women’s suits and ensembles are essential fashion categories that include a variety of garments such as traditional ethnic wear, western suits, co-ord sets, and indo-western outfits. These garments are classified under the HSN (harmonised system of nomenclature) codes 6104 and 6204, which determine their applicable Goods and Services Tax (GST) rates in India.For manufacturers, retailers, and exporters, understanding these classifications is crucial for tax compliance, pricing strategies, and claiming input tax credits (ITC) . GST rates on garments vary based on factors such as fabric type, pricing, and whether the product is fully stitched or in fabric form.This guide provides a detailed breakdown of the HSN codes, GST rates, compliance requirements, and business impact for women's suits and ensembles.
Classification of HSN Code and GST Rates for Women's Suits and Ensembles
The classification of women's suits and ensembles depends on the fabric type and construction of the garment, leading to the following HSN codes:
| HSN Code | Description | Rate (%) | CESS (%) | Effective Date | Rate Revision |
| 6204 | Women Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) ---- Suits | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62041100 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Suits of Wool Of Fine Animal Hair | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62041200 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Suits of Cotton | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62041300 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Suits of Synthetic Fibres | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620419 | Of Other Textile Materials | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62041911 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Suits of Other Textile Materials of Silk: Sequinned Or Beaded With Chattons Or Embroide | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62041919 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Suits of Other Textile Materials of Silk or other Fibres | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62041990 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Suits of Other Textile Materials of All Other Fibres | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62042100 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Ensembles of Wool Or Fine Animal Hair | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620422 | Of Cotton | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62042210 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Ensembles of Cotton : Blouses Combined With Skirts, Trousers Or Shorts | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62042290 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Ensembles of Cotton other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62042300 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Ensembles of Synthetic Fibres | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620429 | Of Other Textile Materials | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62042911 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Ensembles of Other Textile Materials of Silk: Sequinned Or Beaded | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62042912 | Khadi | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62042919 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Ensembles of Other Textile Materials of Silk other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62042990 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Ensembles of Other Textile Materials other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620431 | Of Wool Or Fine Animal Hair | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62043100 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Jackets And Blazers of Wool Or Fine Animal Hair | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62043110 | Khadi | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62043190 | Other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62043200 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Jackets And Blazers of Cotton | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62043300 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Jackets And Blazers of Synthetic Fibres | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620439 | Of Other Textile Materials | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62043911 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Jackets And Blazers of Other Textile Materials of Silk: Sequinned Or Beaded With Chatto | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62043912 | Khadi | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62043919 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Jackets And Blazers of Other Textile Materials of Silk other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62043990 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Jackets And Blazers of Other Textile Materials other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620441 | Of Wool Or Fine Animal Hair | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044110 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Wool Or Fine Animal Hair: House Coats And Like Dresses | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044120 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Wool Or Fine Animal Hair: Blazers | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044190 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Wool Or Fine Animal Hair other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620442 | Of Cotton | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044210 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Cotton : House Coats And The Like Dresses | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044220 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Cotton : Dresses | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044290 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Cotton other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620443 | Of Synthetic Fibres | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044310 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Synthetic Fibres : House Coats And The Like | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044390 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Synthetic Fibres other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044400 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Synthetic Fibres of Artificial Fibres | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620449 | Of Other Textile Materials | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044911 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Other Textile Materials of Silk: House Coats And The Like Dresses | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044919 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Other Textile Materials of Silk other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62044990 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Dresses of Other Textile Materials other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62045100 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Skirts And Divided Skirts of Wool Or Fine Animal Hair | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62045200 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Skirts And Divided Skirts of Cotton | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62045300 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Skirts And Divided Skirts of Synthetic Fibres | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620459 | Of Other Textile Materials | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62045910 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Skirts And Divided Skirts of Other Textile Materials of Silk | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62045990 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Skirts And Divided Skirts of Other Textile Materials other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620461 | Of Wool Or Fine Animal Hair | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62046110 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Trousers, Bib And Brace Overalls, Breeches And Shorts of Wool Or Fine Animal Hair: Trouse | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62046190 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Trousers, Bib And Brace Overalls, Breeches And Shorts of Wool Or Fine Animal Hair other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620462 | Of Cotton | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62046200 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Trousers, Bib And Brace Overalls, Breeches And Shorts of Cotton | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62046210 | Handloom | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62046290 | Other | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62046300 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Trousers, Bib And Brace Overalls, Breeches And Shorts of Synthetic Fibres | 5/12 | 0 | 01/07/2017 | 5/12 |
| 620469 | Of Other Textile Materials | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62046911 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Trousers, Bib And Brace Overalls, Breeches And Shorts of Other Textile Materials of Silk | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62046919 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Trousers, Bib And Brace Overalls, Breeches And Shorts of Other Textile Materials of Silk | 5/12 | 0 | 01/07/2017 | 5/12 |
| 62046990 | Women Or Girls’ Suits, Ensembles, Jackets, Blazers, Dresses, Skirts, Divided Skirts, Trousers, Bib And Brace Overalls, Breeches And Shorts (Other Than Swimwear) - Trousers, Bib And Brace Overalls, Breeches And Shorts : 69 - Of Other Textile Materials | 5/12 | 0 | 01/07/2017 | 5/12 |
Understanding the GST Rate Structure for Women’s Suits and Ensembles
The GST system in India classifies women’s suits and ensembles under different tax slabs based on their price per unit. This tiered structure ensures that essential and affordable clothing remains accessible to consumers while higher-end garments contribute more to tax revenue.
GST Rate Based on Price Bracket
The GST rates for women’s suits and ensembles are determined as follows:
- Garments priced at ₹1,000 or less per piece – Attract a 5% GST rate.
- Garments priced above ₹1,000 per piece – Attract a 12% GST rate.
This price-based taxation method is aimed at balancing affordability with tax collection efficiency. Lower-priced garments, often considered necessities, are taxed at a reduced rate to benefit the mass market, while premium or luxury clothing, typically purchased by higher-income consumers, is taxed at a higher rate.
Rationale Behind the GST Rate Structure
The tiered GST structure for women’s clothing is intended to create a fair taxation system that accounts for varying consumer segments:
- Affordability for Low- and Middle-Income Groups: Clothing priced under ₹1,000 is typically mass-produced and widely used by middle- and lower-income groups. By keeping the tax rate at 5%, the government ensures that essential fashion remains affordable.
- Higher Tax on Premium Garments: Luxury and designer apparel are taxed at a higher rate of 12% to ensure a proportionate contribution to government revenue. The logic behind this is that individuals purchasing high-value clothing can afford to pay a slightly higher tax.
- Encouragement for the Domestic Textile Industry: By offering a lower tax rate on budget-friendly garments, the government supports domestic manufacturers who cater to the broader market. This approach helps small-scale producers stay competitive while also ensuring compliance with tax regulations.
- Revenue Generation and Compliance: The classification of garments into different tax slabs prevents under-invoicing and tax evasion. Businesses dealing in high-end fashion cannot artificially lower declared prices to benefit from the lower tax bracket.
Impact of GST on Women’s Apparel Businesses
The introduction of the GST in India has significantly influenced the apparel industry, including manufacturers, traders, retailers, and consumers. Women's suits and ensembles, classified under HSN codes 6104 and 6204, are subject to a tiered GST structure, impacting pricing, compliance, and market demand. For Manufacturers & Traders GST has brought about several implications for manufacturers and wholesalers dealing in women’s apparel, particularly in terms of taxation, pricing strategies, and compliance obligations.
- Input Tax Credit (ITC) Benefits
- Pricing Adjustments and Market Demand
- GST Compliance and HSN Classification
- Export Benefits and GST Exemptions
For Retailers & Consumers Retailers and end consumers also experience the effects of GST on women’s apparel, primarily through pricing adjustments and tax implications.
- Higher Costs for Premium Clothing
- B2B Transactions and ITC Benefits for Retailers
- Market Pricing Challenges and Consumer Behaviour
GST Compliance for Women’s Apparel Businesses
Compliance with GST regulations is critical for businesses involved in the production, trade, and sale of women’s suits and ensembles. Ensuring proper documentation and timely filing of returns can prevent legal issues and financial penalties. Key Compliance Requirements
- Accurate HSN Code Classification
- GST Registration Requirements
- Proper Invoicing & Documentation
- ITC Claims for Businesses
- Timely GST Return Filing
Understanding GST on Women’s Suits and Ensembles
The GST framework for women’s apparel, particularly suits and ensembles, is designed to balance affordability and revenue generation. A 5% tax rate applies to garments priced below ₹1,000, ensuring essential clothing remains accessible, while a 12% tax rate is levied on premium apparel, contributing to higher tax revenue from discretionary purchases.For businesses, understanding and complying with GST regulations is essential to avoid penalties and optimise profitability. Manufacturers, wholesalers, and retailers can leverage Input Tax Credit (ITC) benefits to reduce tax burdens, provided they maintain accurate records and file GST returns on time.From a consumer perspective, GST directly affects pricing and purchasing decisions. While budget-conscious shoppers may prefer products within the lower tax bracket, premium fashion buyers must account for the additional tax component in their purchases.As India’s fashion and retail industry continues to evolve, staying updated on GST policies and compliance measures is crucial for both businesses and consumers. Adapting to tax regulations, optimising supply chains, and making strategic pricing decisions will help apparel businesses remain competitive while ensuring tax compliance. Use the GST Calculator to determine your tax liability and ITC claims efficiently.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the HSN code for women’s suits and ensembles?
Women’s suits and ensembles fall under HSN code 6104 (for knitted or crocheted garments) and HSN code 6204 (for woven garments). These classifications help determine the applicable GST rate for taxation and compliance purposes.
What is the GST rate for women’s suits and ensembles?
The GST rate is based on the unit price of the garment:
- 5% GST for garments priced at ₹1,000 or less per piece
- 1 2% GST for garments priced above ₹1,000 per piece
How is the price of a garment determined for GST purposes?
The price of the garment is determined based on the selling price per piece, excluding any additional charges such as transportation and delivery fees. If the final invoice price (before GST) of a single piece exceeds ₹1,000, the 12% GST rate applies.
Can manufacturers and retailers claim Input Tax Credit (ITC) on women’s apparel?
Yes, businesses registered under GST can claim ITC on GST paid for raw materials, dyes, embroidery, stitching, packaging, and other inputs used in the production and sale of women’s suits and ensembles. This helps reduce the overall tax liability.
Do small retailers need to register for GST?
Businesses with an annual turnover of ₹40 lakh or more (₹20 lakh for special category states) must register for GST.
Small retailers below this threshold can opt for the Composition Scheme, where they pay a fixed tax rate but cannot claim ITC.
What are the compliance requirements for businesses selling women’s apparel?
Businesses must:
- Classify products correctly under HSN 6104/6204
- Issue GST-compliant invoices with HSN codes and tax breakdowns
- File GST returns on time, including GSTR-1 (sales), GSTR-3B (summary), and GSTR-9 (annual return)
- Maintain proper records for claiming ITC and avoiding tax audits
How does GST affect the pricing of premium women’s clothing?
The 12% GST on garments above ₹1,000 increases the final retail price, making premium and designer clothing more expensive. Many retailers adjust pricing strategies to keep products under ₹1,000 to benefit from the lower 5% GST rate.
Are exports of women’s suits and ensembles subject to GST?
No, exports are treated as zero-rated supplies under GST. Exporters can either:
- Claim a refund on input tax credit (ITC) paid on inputs, or
- Supply goods without paying GST under a bond or letter of undertaking (LUT) and claim a refund later.
What happens if the wrong HSN code is used while filing GST returns?
Incorrect classification under the wrong HSN code may lead to penalties, additional tax liabilities, and compliance issues. Use HSN 6104 for knitted garments and HSN 6204 for woven garments to avoid errors.
Can a business get a GST refund on unsold stock of women’s apparel?
If GST has already been paid on input materials for unsold stock, businesses can carry forward ITC and adjust it against future sales. However, refunds are only applicable in cases of exports, inverted duty structure claims, or excess tax paid due to errors.
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.
