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GST Rate for Clothing, Apparel and Textile in India

GST rate for clothing, apparel and textile in India

In this article, we will discuss at the length GST rate for clothing in India classified in readymade, fibre, and so on. The textile industry is one of the largest industries in India after agriculture. It has generated large employment opportunities for both skilled and unskilled labour. Overall, the textile industry accounts for more than 2% of India’s GDP.

The unfortunate part is that this sector has been highly unorganized. With the introduction of GST, this unorganized sector is gradually moving towards a more synchronised market. GST aims to organize the textile industry of India to enable smooth transferring of Input Tax Credit and other benefits that were earlier not so easily available. In GST, a uniform tax rate is levied which eventually results in the elimination of blocked input taxes.

GST RATE FOR CLOTHING IN INDIA

Under GST, the apparel and clothing segment is divided across various chapters. This industry is so diverse and extensive that is difficult to contain all the segment of the clothing and apparel industry in one chapter. The rate of GST charged on these items also differs from type to type.

For example, the rate of GST charged for knitted or non-knitted apparel may differ.

The GST rate for clothing in India also depends upon the fibre like cotton, silk, wool, etc. Other conditions for the apparel industry may depend on the taxable value of the product being sold.

For example,

Case 1: A Ltd. sells Knitted sweater for Rs. 1500 to the customer. Then, the GST charged by A Ltd. shall be at the rate of 12%.

Case 2: A Ltd. sells knitted sweater, same as mentioned above for Rs. 700 to the customer. Then, the GST shall be charged on the same is 5%.

GST Rate for clothing in India – Tabular presentation

The below table contains a list of the GST rates for clothing and apparel. The rate on the items mentioned in the below list depends upon the taxable amount.

Item Chapter (HSN) Rate(%) Condition
Knitted apparel and clothing 61 5 If taxable value is < Rs. 1000
Non – Knitted apparel and clothing 62 5 If taxable value is < Rs. 1000
Apparel and Clothing whether Knitted or not 61 & 62 12 If taxable value is > Rs. 1000
Other textile products(curtains, bedsheets, etc.)

 

63 5 If taxable value is < Rs. 1000
63 12 If taxable value is > Rs. 1000

Note: The above rates apply to the taxable value per piece i.e. the sale value.

GST rate for clothing in India based on the fibre of goods

The table below contains a list of HSN Codes and GST rate for clothing in India based on the fibre of the products. The major chapters under which the fibres are divided into are 50, 51, 52 or 54.

Item Chapter(HSN) Rate(%) Remark
Cotton 52 5 Include all cotton goods
Silk 50 5 All silk products
Silkworm laying, raw silk, silk waste 50 Exempt  
Wool 5104 5 Garnetted stock of wool or fine or coarse animal hair, shoddy wool
5105 5 Wool and fine or coarse animal hair, carded or combed

 

5106/5107/5108/

5109/5110

5 Yarn of wool or animal hair

 

5111/5112/5113 5 The fabrics made of wool or animal hair [no refund of ITC accumulated]

 

5101 Exempt Wool, not carded or combed
5102 Exempt Fine or coarse animal hair, not carded or combed
5103 Exempt Waste of wool or fine or coarse animal hair
Nylon and Artificial fibres 54 5 Only for man-made materials
54 18 Synthetic filament yarn like acrylic, nylon, polyester, etc.
54 18 Artificial filament yarn such as viscose rayon, etc.
54 18 Sewing thread of man-made filaments

From the above table, we can see that there are different GST rate for clothing in India. These rates depend upon the fibre being used in the manufacturing of such products to the taxable value. Also, the same has been divided into various chapters and headings based on its nature.

FAQs for GST rate for clothing in India

FREQUENTLY ASKED QUESTIONS(FAQs)

1. What is the GST rate on readymade apartments?

The GST rate for clothing in India has defined rates for readymade garments. GST is charged on readymade garments and apparel at 5% when the taxable value is up to ₹1,000 per piece. However, if the article is above Rs. 1000 they are taxed at 12 percent.

2. What is the rate of GST on cotton yarn and HSN code?

The GST rate charged on cotton yarn is 5% and the HSN Code is 5205.

3. Does the farmer grow crops need to be registered under GST?

No, agriculturist is exempted from registration under the GST u/s 23(1)(b) of the CGST Act, 2017.

4. Do I have to obtain registration under GST for selling outside the state?

Yes, a person who wants to make an inter-state supply of goods or services must get GSTIN.

5. What is the HSN Code of Anti-pollution mask and rate of GST charged?

HSN Code of anti-pollution face mask is 6307 and the rate of GST is charged at 5%.

6. What is the HSN Code of the surgical mask?

HSN Code of the surgical mask is 9018.

7. What is the rate of GST charged on silkworm and silk waste?

There is no GST charged on raw silk, silk waste, or silkworm. It is exempted under the GST Act.

8. What are the HSN Code and GST rate for Garnetted stock wool?

The HSN Code for Garnetted stock wool or anima hair is 5104. The GST rate is charged at 5% on the same.

9. What is the HSN code for knitted apparel?

The HSN Code for knitted apparel whose taxable value is less than Rs. 1000 is 61. The HSN Code for knitted apparel whose taxable value is more than Rs. 1,000 is 62.

10. What is the GST rate for clothing in India if you are exporting clothing and apparel?

No, as per the provisions of the GST, export of any goods or services in non-taxable under the Act.

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