GST Rates and HSN Code for Textile Fabrics

Textile fabrics are an essential part of the Indian economy, with the country being the second-largest producer and exporter of textiles globally. The textile industry in India is one of the oldest and most significant industries and provides employment to millions of people across the country.

GST Rates for Textile Fabrics

The Goods and Services Tax (GST) rates for textile fabrics vary depending on the category and composition of the fabric. The GST rates for textile fabrics are as follows:

1. 5% GST is applicable to cotton and natural fabrics such as wool, silk, jute, and khadi.

2. 12% GST is applicable to other fabrics such as rayon, polyester, nylon, and other synthetic fabrics.

3. 18% GST is applicable to embroidery and other decorative fabrics.

4. 28% GST is applicable to fabrics made of synthetic material and coated or laminated textiles.

It is essential to note that these GST rates are subject to change, and it is advisable to consult with a tax consultant to understand the latest GST rates applicable to your business.

HSN Code for Textile Fabrics

The Harmonized System of Nomenclature or HSN is a global standard classification system for goods traded across borders, and it is used to classify goods for taxation purposes. The HSN code for textile fabrics is as follows:

1. The HSN code for cotton and natural fabrics such as wool, silk, jute, and khadi is 5201.

2. The HSN code for other fabrics such as rayon, polyester, nylon, and other synthetic fabrics is 5407.

3. The HSN code for embroidery and other decorative fabrics is 5810.

4. The HSN code for fabrics made of synthetic material and coated or laminated textiles is 5903.

Conclusion

Understanding the GST rates and HSN code for textile fabrics is crucial for all business owners in the textile industry. Failing to comply with the GST regulations could result in penalties and legal implications for your business.

It is advisable to consult with a tax consultant to ensure that your business complies with the latest GST regulations applicable to the textile industry. With the right knowledge and compliance, your business can continue to thrive in the Indian textile industry.