The Indian government implemented Goods and Services Tax (GST) in July 2017. This transformation has been a game-changer in the Indian economy, bringing greater transparency and simplifying the tax regime for businesses. GST has replaced several indirect taxes, such as VAT, service tax, and excise duty.
Under GST, all goods and services are classified according to the Harmonized System of Nomenclature (HSN) code. This code is an internationally recognized system for classifying goods for trade. Each product is assigned a unique HSN code based on its nature, composition, and use.
Woven Fabrics Of Artificial Filament Yarn falls under HSN code 5408. In this article, we will explore the GST rates and HSN code for Woven Fabrics Of Artificial Filament Yarn in detail.
Woven Fabrics Of Artificial Filament Yarn attract a GST rate of 5%. This rate applies to all woven fabrics of artificial filament yarn, including those used in the manufacture of sarees, dress materials, and other clothing items.
It is essential to note that the 5% GST rate applies only to woven fabrics of artificial filament yarn. Woven fabrics made from natural fibers, such as cotton, wool, or silk, are taxed at 0% GST under HSN code 5208, 5111, and 5007, respectively.
HSN code 5408 covers woven fabrics of artificial filament yarn. This code includes fabrics such as:
1. Textured yarn fabrics
2. Organzine fabrics
3. Crepe fabrics
4. Gauze fabrics
5. Chiffon fabrics
6. Taffeta fabrics
7. Georgette fabrics
8. Satin fabrics
9. Tulle fabrics
10. Net fabrics
It is important to note that while HSN code 5408 includes a range of woven fabrics, the code does not cover knitted fabrics.
In conclusion, Woven Fabrics Of Artificial Filament Yarn are taxed at 5% under HSN code 5408. This rate applies to all woven fabrics of artificial filament yarn, including those used in the manufacture of sarees, dress materials, and other clothing items. Understanding the GST rate and HSN code for your products is crucial to ensure that your business remains compliant with the tax regulations in India.
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