GST Rates and HSN Code for Nonwovens

Nonwovens are a type of fabric that is made up of fibers that are not woven together. Instead, they are pressed, matted, or bonded together to form a fabric. Nonwovens are used in many different industries, including healthcare, automotive, construction, and more.

If you're in the business of manufacturing nonwovens, it's important to know the GST rates and HSN codes associated with your product. In this article, we'll take a closer look at GST rates and HSN codes for nonwovens in India.

What is GST?

GST stands for Goods and Services Tax, which is a value-added tax that is levied on most goods and services sold in India. GST is an indirect tax that is collected by the government at every stage of the supply chain, from the manufacturer to the consumer. The GST system was implemented in India in 2017 in order to simplify the tax system and promote ease of doing business.

What is an HSN Code?

HSN stands for Harmonized System of Nomenclature, which is an internationally recognized system for classifying goods. HSN codes are used to classify goods for taxation purposes. Each goods is assigned a unique HSN code based on its nature, composition, and intended use. The HSN code is used to determine the GST rate applicable to a particular goods.

GST Rates for Nonwovens

The GST rates for nonwovens in India vary depending on the type of nonwoven fabric being produced. The schedule of GST rates for nonwovens is as follows:

1. 5% GST on nonwovens made from man-made fibers, such as polyester, nylon, or viscose

2. 12% GST on nonwovens made from natural fibers, such as cotton, wool, or silk

3. 18% GST on nonwovens made from other materials, such as glass fibers or carbon fibers

It's important to note that the GST rates for nonwovens may be subject to change over time. Business owners should stay up-to-date with any changes to the GST rates in order to ensure they are paying the correct amount of taxes.

HSN Code for Nonwovens

The HSN code for nonwovens is 5603. This code is used to classify nonwoven fabrics of all types, regardless of their composition or intended use. Business owners who are manufacturing nonwoven fabrics should ensure that their products are properly classified under the correct HSN code in order to avoid any issues with tax authorities.

Conclusion

Nonwovens are an important type of fabric that is used in many different industries. If you're in the business of manufacturing nonwovens, it's important to understand the GST rates and HSN codes associated with your product. By staying up-to-date with the latest tax regulations, you can ensure that your business is operating in compliance with the law and avoid any potential issues with tax authorities.