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Published on:

May 28, 2025

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GST rates and HSN code 5408 for Woven Fabrics Of Artificial Filament Yarn

Artificial filament yarn woven fabrics represent an essential segment in textile manufacturing. The market highly appreciates artificial filament yarn fabrics because of their attractive look combined with their durability and flexibility traits. Artificial filament yarn woven fabrics act as crucial elements throughout domestic markets and global territories because they function in fashion apparel and home furnishings and industrial applications. Their excellent texture together with their low weight and robust properties creates artificial filament yarns the best material option for different textile products which include elegant garments and durable upholstery.

Knowledge of Goods and Services Tax (GST) rates and Harmonized System of Nomenclature (HSN) codes pertaining to such fabrics serves as a fundamental requirement for manufacturers along with traders and consumers operating in the Indian taxation system. Businesses must fully understand GST rates and properly classify products using HSN code 5408 to stay compliant while avoiding tax-related legal issues. This thorough article provides a detailed study of artificial filament yarn woven fabric GST rates and HSN code 5408 specifications together with essential operational considerations for maintaining regulatory compliance and business operational excellence.

What Are Woven Fabrics of Artificial Filament Yarn?

The manufacturing process of artificial filament yarn fabrics generates interlaced artificial fiber materials like viscose and rayon or acetate. Massive quantities of the fabric find their use in clothing along with home furnishings as well as industrial applications since it offers both lightweight characteristics and smooth appearance coupled with excellent tensile properties.

Key Characteristics

Lightweight and Strong: Appropriate for apparel and furnishings.

Smooth Texture: Provides a soft and warm touch.

Diversified Use: From apparel to industrial use.

High Tensile Strength: Suits high-stress uses varieties of Woven Fabric of Artificial Filament Yarn

Rayon Fabric: Silk-like drape and texture.

Viscose Fabric: Spinning and cozy.

Acetate Fabric: Lustrous and smooth, often used in linings.

Blended Fabrics: Combination of artificial filament yarn and natural fibers.

Learning HSN Code 5408

The HSN code 5408 belongs to Chapter 54 of the GST tariff which includes man-made filaments. The classification relates to woven fabrics of artificial filament yarn with artificial monofilaments exceeding 67 decitex and having a maximum diameter of 1 millimeter.

Key Specifications of HSN Code 5408:

Type of Yarn: Artificial filament yarn, including monofilaments.

Decitex: 67 or more.

Diameter: Not exceeding 1 mm.

Uses: Clothing, textiles, furniture, and industrial use.

GST Rates for HSN Code 5408

The GST rates of woven artificial filament yarn fabrics under HSN code 5408 are divided based on the fabric type and purpose. Mostly, the GST rate is 12%, but it can be modified based on special cases and exceptions.

Breakdown of GST Rates:

Description	HSN Code	GST Rate
Woven fabrics of artificial filament yarn	5408	12%
Dyed or printed fabrics	5408	12%
Mixed woven fabrics of synthetic or natural yarn	5408	12%

Practical Examples of GST Calculation

Example	Sale Value	GST Rate	GST Amount	Total Invoice Value
Sale of Rayon Fabric	₹10,000	12%	₹1,200	₹11,200
Sale of Dyed Artificial Filament Fabric	₹20,000	12%	₹2,400	₹22,400

Compliance and Documentation

To be GST compliant, the companies that are involved in manufacturing, trading, or exports of such goods must classify their product appropriately under HSN code 5408. Proper invoicing and documentation must be done to avoid penalties and have smooth business operations.

Critical Documentation Requirements

GST Invoice: Properly structured and containing HSN code.

Purchase and Sales Records: Proper records to claim ITC.

Tax Returns: On-time filing of GST returns to avoid fines.

Input Tax Credit (ITC) under HSN Code 5408

Entities engaged in the supply chain of artificial filament yarn woven fabrics can take ITC on the GST paid in procuring. This lessens the overall tax outflow.

How to Claim ITC

Maintain accurate purchase records.

Correct entry of HSN code.

Filing returns timely with proper data.

Common Problems and Solutions

Problems in classification: Misclassification leads to penalty.

Solution: Check GST Tariff and seek professional guidance for correct classification.

Input Tax Credit (ITC) Complications: It can be challenging to ascertain ITC eligibility.

Solution: Maintain proper records and consult tax professionals.

Documentation Mistakes: Invoicing mistakes can cause ITC claim delay.

Solution: Use computerized accounting software for accuracy.

Conclusion

For textile businesses operating within today's evolving market, understanding HSN code 5408 for woven fabrics of artificial filament yarn together with GST rates proves essential for both tax compliance and industry competitiveness. Hefty industry operations in the textile field depend on precise classification combined with strict tax compliance for smooth procedures and affordable costs. Businesses can reduce mistakes and maintain legal compliance by understanding GST rates and correctly implementing HSN code 5408 for woven fabrics of artificial filament yarn.

Accurate documentation methods combined with strong accounting procedures help businesses achieve maximum benefits from their Input Tax Credit possibilities. Error-free filing of tax returns and accurate invoicing protects businesses from state-imposed penalties because it improves their financial standing. Textile enterprises should remain updated with GST regulation changes because this knowledge allows them to develop strategic operational plans which reduce tax obligations while achieving higher profitability. The textile business achieves sustainable development and success through businesses adopting a proactive GST compliance strategy.

FAQs

Q1: What is HSN code 5408?

A1: HSN code 5408 is woven fabrics made of artificial filament yarn, e.g., some monofilaments.

Q2: What is the GST tax rate for woven fabrics with HSN code 5408?

A2: The GST tax rate for woven fabrics under the above said code is normally 12%.

Q3: Are the fabrics Input Tax Credit (ITC) eligible?

A3: Yes, ITC is available if compliance and documentation are done.

Q4: Is exemption available under this HSN code?

A4: Exemptions may vary, and it is advisable to refer to the latest notifications and consult with tax professionals.

Q5: How can one verify the correctness of GST rates for HSN code 5408?

A5: You may visit the official GST site or consult a qualified tax professional for the most recent information.

Q6: Are GST rates on fabrics from artificial filament yarn consistent in every state of India?

A6: GST is a centralized tax and is consistent in all states. Local compliance requirements may vary.

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