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Published on:
February 25, 2023
By
Prerna

GST Rates and HSN Code for Wool, Not Carded or Combed

As per the GST rates and HSN code system, wool that is not carded or combed falls under the category of natural textiles. It is classified under HSN code 5101 and has a GST rate of 5%. This rate is applicable to both raw wool and processed wool that has not been carded or combed.

Wool is a commonly used natural fiber that is derived from the fleece of sheep, goats, and other animals. It is a versatile material that is used to make a variety of products, ranging from clothing and blankets to carpets and upholstery. However, the classification of wool under the GST system can be confusing for small and medium business owners and startup founders who are not familiar with the system.

Understanding the HSN Code for Wool

The Harmonized System of Nomenclature (HSN) is a system that is used to classify goods for taxation purposes. It is an internationally recognized system that is used by over 200 countries. The HSN code for wool, not carded or combed, is 5101.

This code is used to identify and classify wool that has not been processed in any way. It includes raw wool that has been sheared from animals, as well as wool that has been washed but not carded or combed. The HSN code is used to determine the GST rate that is applicable to the product.

The GST Rate for Wool

The GST rate for wool that is not carded or combed is 5%. This rate is applicable to both raw wool and processed wool that has not been carded or combed. The 5% GST rate is lower than the rate that is applicable to many other textile products, which are classified under higher GST rates.

The 5% GST rate applies to all types of wool that are not carded or combed, regardless of the form in which they are sold. This includes wool that is sold loose, as well as wool that is sold in the form of yarn or other products.

Conclusion

Wool, not carded or combed, is classified under HSN code 5101 and has a GST rate of 5%. This rate is applicable to both raw wool and processed wool that has not been carded or combed. Small and medium business owners and startup founders who deal with wool products should be aware of the classification of wool under the GST system, as well as the applicable GST rate.

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Updated on:
March 16, 2024