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Published on:
February 25, 2023
By
Prudhvi Raj

GST Rates and HSN Code for Textile Machines - Everything You Need to Know

Textile machines are widely used by the textile industry for various processes such as spinning, weaving, dyeing, printing, and finishing. The Goods and Services Tax (GST) regime in India has brought about significant changes in the way businesses operate, and it is essential for small and medium business owners and startup founders in the textile industry to understand the GST rates and HSN codes applicable to textile machines.

Understanding GST Rates for Textile Machines

The GST Council has classified textile machines under the following headings:

  • 8444 - Machines for extruding, drawing, texturing or cutting man-made textile materials
  • 8445 - Machines for preparing textile fibres; spinning, doubling or twisting machines and other machinery for producing textile yarns; textiles reeling or winding machines, and machines for preparing textile yarns for use on the machines of heading 8446 or 8447
  • 8446 - Weaving machines (looms)
  • 8447 - Knitting machines, stitch-bonding machines and machines for making lace, tufting machines and machines for carpets and other textile floor coverings
  • 8448 - Auxiliary machinery for use with machines of heading 8444, 8445, 8446 or 8447 (for example, dobbies, Jacquards, automatic stop motions, shuttle changing mechanisms); parts and accessories suitable for use solely or principally with the machines of this heading or of heading 8444, 8445, 8446 or 8447 (for example, spindles and spindle flyers, card clothing, combs, extruding nipples, shuttles, healds and heald frames, reeds, needles, and other articles of similar nature and use)

The GST rates applicable to textile machines under the above headings are as follows:

Note that the above rates are subject to change based on updates from the GST Council.

Understanding HSN Codes for Textile Machines

The Harmonized System of Nomenclature (HSN) is a standardized system of names and numbers used for classifying goods under the GST regime. The HSN codes for textile machines are as follows:

  • 8444 - Machines for extruding, drawing, texturing or cutting man-made textile materials
  • 8445 - Machines for preparing textile fibres; spinning, doubling or twisting machines and other machinery for producing textile yarns; textiles reeling or winding machines, and machines for preparing textile yarns for use on the machines of heading 8446 or 8447
  • 8446 - Weaving machines (looms)
  • 8447 - Knitting machines, stitch-bonding machines and machines for making lace, tufting machines and machines for carpets and other textile floor coverings
  • 8448 - Auxiliary machinery for use with machines of heading 8444, 8445, 8446 or 8447 (for example, dobbies, Jacquards, automatic stop motions, shuttle changing mechanisms); parts and accessories suitable for use solely or principally with the machines of this heading or of heading 8444, 8445, 8446 or 8447 (for example, spindles and spindle flyers, card clothing, combs, extruding nipples, shuttles, healds and heald frames, reeds, needles, and other articles of similar nature and use)

Conclusion

The GST rates and HSN codes for textile machines are crucial for small and medium business owners and startup founders in the textile industry. Understanding these rates and codes can help businesses comply with the GST regime and avoid penalties. It is advisable to consult a tax expert or a professional service provider for any further clarification on the GST rates and HSN codes applicable to textile machines.

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Updated on:
March 16, 2024