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Key Highlights:
- Garments fall under HSN Chapter 61 (knitted/crocheted) and Chapter 62 (woven).
- Different clothing types have specific garment HSN codes for accurate classification and taxation.
- HSN 6113 covers knitted or crocheted jackets, coats, and similar outerwear for men and women.
- Correct HSN classification ensures smooth trade, compliance, and proper tax filing.
The goods and services tax (GST) on garments depends on their type and price. The garment HSN code helps in proper classification for taxation. Clothes priced below a certain limit have a lower tax, while premium garments attract a higher GST rate. Businesses need to use the right HSN (harmonised system of nomenclature) code to avoid tax mistakes. For manufacturers, traders, and retailers, knowing these codes makes tax filing easier. Since GST rules can change, staying updated is important. Understanding these details helps businesses run smoothly. Let’s take a closer look at how GST applies to garments.
GST Applicability on Garments
GST applies to most clothing and textile sales since they are considered taxable supplies. Whether the garments are stitched or unstitched, GST is still applicable.
- Raw cotton is taxed at 5%, and buyers must pay GST under the reverse charge mechanism.
- Raw silk and jute are exempt from GST, so dealers and mills working with these materials don’t need to register or pay taxes.
- Tailoring and clothing rental services fall under GST, meaning businesses offering these services must comply with tax laws.
- Small garment suppliers with turnover up to ₹1.5 crore (₹75 lakh in northeastern states) can opt for the composition scheme for simplified tax filing. The limit is ₹50 lakh for those renting clothes or offering stitching services.
- "Buy one, get one free" offers are not taxed separately, but businesses cannot claim an input tax credit on the free items.
Understanding HSN Code Structure
The HSN codes follow a structured system to classify goods in detail. Each code gets more specific as digits are added. Let’s break it down using the 6113 HSN code as an example.
- 2-Digit Code (61): This covers all knitted or crocheted clothing and accessories.
- 4-Digit Code (6113): Refers to knitted or crocheted garments like jackets, suits, and similar items.
- 6-Digit Code (6113.00): This further classifies these garments by material and type.
- 8-Digit Code: This adds finer details, such as fabric composition or design features.
Each level helps businesses and tax authorities correctly classify products. Using the right HSN code ensures accurate taxation and smooth trade.
Garments HSN Code and GST Rate
The HSN Code 6113 falls under Chapter 61, which covers knitted or crocheted garments. This includes items like jackets, suits, and similar apparel made with stretchable fabric.These clothes are different from woven garments, which are classified under Chapter 62. The 6113 HSN code is specifically used for knitted jackets and similar outerwear. Effective from 01 July 2017, these products attract zero cess charges. Here’s the list with GST rates:
| HSN Code | Description | Rate (%) |
| 6113 | Garments, Made Up of Knitted or Crocheted Fabrics of Heading 5903, 5906 Or 5907 | 5/12 |
| 61130000 | Garments, Made Up of Knitted or Crocheted Fabrics of Heading 5903, 5906 Or 5907 | 5/12 |
Here’s what is covered under garments HSN codes 5903, 5906, and 5907:
- 5903 HSN Code: Refers to textile fabrics coated, covered, or laminated with plastics. This includes materials like PVC-coated fabrics used for raincoats, upholstery, or industrial covers.
- 5906 HSN Code: This covers rubberised textile fabrics, which are used in waterproof clothing, inflatable structures, and industrial applications.
- 5907 HSN Code: This includes textile fabrics treated or coated in other ways, such as oilcloth, waxed canvas, or fabrics used for tents and protective coverings.
GST Rates for Garments Based on Value
The GST on garments depends on their price. The government has set threshold values to decide the tax rate.
- Garments priced up to ₹1,000 per piece (based on the sale price) attract 5% GST.
- Garments costing more than ₹1,000 per piece are taxed at 12% GST.
- This rule applies to all types of clothing, whether knitted (HSN Chapter 61) or woven (HSN Chapter 62). Businesses must classify garments correctly and charge the right GST rate.
Impact of GST on the Garment Industry
The implementation of GST has changed how the garment industry operates. It affects manufacturers, traders, and retailers in different ways.
- Manufacturers now deal with a simpler tax system. They can also claim input tax credits, which helps reduce costs. However, different GST rates for raw materials and finished goods create pricing issues.
- Traders face challenges in understanding new tax rules, and smaller businesses find it hard to adapt. Some also worry that higher GST rates may reduce sales.
- Retailers need to adjust prices and manage inventory differently. They must ensure proper tax calculations to stay compliant.
Overall, while GST aims to create a unified tax system, its implementation presents challenges that require the garment industry to adapt strategically to maintain growth and sustainability.You can use the online GST calculator to find your GST liability and fulfil the legal norms of GST payments with ease.
Know the HSN Codes and GST Rates on Garments
Garments HSN codes help classify the garments for tax purposes. Knitted clothes come under Chapter 61, while woven ones fall under Chapter 62. GST depends on price, so businesses must stay updated. Knowing these codes ensures smooth trade, correct tax filing, and fewer compliance issues in the garment industry.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the HSN code for garments?
Garments fall under HSN Chapter 61 (knitted/crocheted) and Chapter 62 (woven).
What does HSN 6113 cover?
HSN 6113 includes knitted or crocheted coats, jackets, and similar outerwear for both men and women.
What is the GST rate for garments under HSN 6113?
The GST rate depends on the price—5% for items priced up to ₹1,000 per piece and 12% for those above ₹1,000.
Do different types of garments have separate HSN codes?
Yes, different clothing items, such as shirts, dresses, and suits, have specific HSN codes within Chapters 61 and 62.
Is GST applicable to all garments?
Yes, GST applies to all garments, but some special materials, such as raw silk and jute, may be exempt.
Do garment traders and retailers need GST registration?
Yes, registration is mandatory if their annual turnover exceeds ₹40 lakh (₹20 lakh for special category states).
How can businesses ensure correct GST filing for HSN 6113 garments?
Businesses should classify garments correctly under HSN 6113, apply the appropriate 5% or 12% GST rate, and maintain proper invoices to avoid tax errors.
Are all types of jackets and coats included under HSN 6113?
Yes, HSN 6113 covers various knitted or crocheted coats, jackets, and similar outerwear, including those made of wool, cotton, or synthetic fibres.
How are "Buy One, Get One Free" offers taxed under GST?
GST applies to the total invoice value, but no input tax credit is allowed for free items.
Can GST rates for garments change?
Yes, the government may revise GST rates based on industry demands and policy updates. Always check official notifications.
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.
