Shops and retail

GST invoice format for a clothing store (garment and apparel shop)

A clothing store bill must decide the GST rate piece by piece. Since 22 September 2025, apparel of chapters 61 and 62 with a sale value up to 2,500 rupees per piece is taxed at 5%, and pieces above that value at 18%. The invoice should therefore show the per-piece price after discount, the resulting rate on each line, size and colour for exchanges, and whether the item is knitted (chapter 61) or woven (chapter 62).

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Sample clothing store invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Men's cotton formal shirt, woven (size 40)	6205	2 PCS	1,299.00	2,598.00	5%
Women's knitted cotton T-shirt (size M)	6109	3 PCS	599.00	1,797.00	5%
Men's denim jeans (waist 32)	6203	1 PCS	2,899.00	2,899.00	18%
Women's woven kurta (size L)	6204	1 PCS	1,850.00	1,850.00	5%
Men's wool-blend blazer (size 40)	6203	1 PCS	5,499.00	5,499.00	18%
Taxable value				₹14,643.00
GST (CGST + SGST, or IGST if inter-state)				₹1,823.90
Invoice total				₹16,466.90

Sample prices are illustrative. Check the GST rate for your exact item or service before billing.

Extra fields a clothing store invoice needs

Per-piece sale value: The 2,500 rupee threshold applies per piece, not per bill. Showing the unit price of each garment after any discount proves why a line falls in the 5% or the 18% slab when a customer buys several items together.
Knitted or woven chapter: T-shirts, innerwear and track pants are usually knitted (chapter 61) while shirts, trousers and sarees with stitched blouses are often woven (chapter 62). The correct chapter on each line keeps your HSN summary accurate.
Size and colour: Clothing has the highest exchange rate of any retail trade. Size and colour printed on the bill let staff match the returned piece to the original sale and issue a credit note against the right line.
Discount per line: Season sales are common. Printing the discount on each line, rather than as one figure at the bottom, shows the post-discount value per piece that decides the rate and keeps the threshold test transparent.
Exchange or return window: A short note on the exchange period and the condition of tags avoids disputes. When an exchange changes the item value across the threshold, the bill reference helps raise the right credit note and fresh invoice.
Set or combo identification: Kurta sets, suit sets and twin packs are sold as one unit. Marking the line as a set clarifies that the threshold is tested on the value of the set as sold, which matters for made-up sets under chapter 63.

Standard GST invoice fields

Rule 46 of the CGST Rules applies to every tax invoice, including this one:

Supplier name, address and GSTIN
Consecutive invoice number (max 16 characters, unique for the year)
Date of issue
Customer name, address and GSTIN (if registered)
Place of supply with state name
HSN/SAC code per item
Description, quantity and unit
Taxable value after discounts
GST rate and CGST + SGST or IGST amounts
Signature or digital signature

GST rules that matter for a clothing store

The 2,500 rupee per-piece threshold

Notification 9/2025-Central Tax (Rate) lists articles of apparel and clothing accessories of chapters 61 and 62 with a sale value not exceeding 2,500 rupees per piece in the 5% schedule, and the same goods above 2,500 rupees per piece in the 18% schedule. Before this change the cut-off was 1,000 rupees and the rates were 5% and 12%. The threshold is tested on each piece, so a bill with a 1,299 rupee shirt and a 2,899 rupee pair of jeans legitimately carries two rates. The billing software must select the rate from the actual selling price of the piece, not from a fixed rate stored against the product category.

Discounts and the threshold

Section 15(3) of the CGST Act excludes a discount shown on the invoice at the time of sale from the value of supply. A jacket tagged at 3,200 rupees and sold at 2,400 rupees during a sale, with the discount shown on the bill, therefore has a sale value under the threshold and attracts 5%. Discounts given outside the bill, such as a later voucher, do not change the original rate. Showing the discount line by line, not as a lump sum, is what makes this rate selection defensible during an audit.

Exchanges and credit notes

When a customer returns a garment and takes another, treat it as a return of the first supply and a fresh sale of the second. The return is adjusted through a credit note under section 34 referring to the original invoice, and the new garment gets its own invoice line at its own rate. If a 5% kurta is exchanged for an 18% blazer, netting the two lines inside one bill without this split misreports the tax at both rates and makes the HSN summary wrong. Keep the credit note and the new invoice linked by reference.

Composition option for small garment shops

A clothing shop that only sells within its state and stays under the composition turnover limit can pay a flat tax on turnover and issue bills of supply without charging GST. This suits shops whose customers are consumers who cannot use input tax credit. It suits poorly a shop that sells uniforms or corporate wear to registered businesses, because those buyers lose credit. Check the mix of B2B and B2C sales before opting in, since the choice applies to all the shop's supplies, and the bill of supply cannot show any tax.

Common billing mistakes

Charging one rate on the whole bill because most items are cheap, so the expensive piece above 2,500 rupees is under-taxed at 5%.
Testing the threshold on the tagged MRP instead of the discounted per-piece price actually charged and shown on the invoice.
Netting an exchange inside one bill instead of issuing a credit note for the returned piece and a fresh line for the new one.
Still using the old 1,000 rupee cut-off and 12% rate in the item master months after the September 2025 change.

Clothing store GST invoice: FAQ

What is the GST rate on clothes in 2025-26?

From 22 September 2025, readymade garments of chapters 61 and 62 attract 5% when the sale value is up to 2,500 rupees per piece and 18% when it is higher. The test is per piece, so one bill can carry both rates. Woven fabric sold by the metre has its own rate under chapters 50 to 55 and is not covered by this threshold.

Does a discount change the GST slab on a garment?

Yes, if the discount is given at the time of sale and shown on the invoice. The value after such a discount is the transaction value, so a garment tagged above 2,500 rupees but sold below it after an on-bill discount moves to 5%. A discount given later through a voucher or cashback does not change the rate on the original bill.

Which HSN code should a clothing store print?

Use chapter 61 for knitted or crocheted garments such as T-shirts (6109) and chapter 62 for woven garments such as shirts (6205), trousers and jeans (6203) and women's suits and kurtas (6204). Shops with turnover up to five crore rupees need at least four digits on B2B invoices; showing them on retail bills too keeps your HSN summary simple.

Is a stitching or alteration charge added to the garment bill?

Free alteration offered with the sale is part of the garment price and needs no separate line. If you charge for alteration separately, show it as a separate service line and confirm the applicable service rate before billing, because it is not taxed as apparel and does not follow the 2,500 rupee test.

Sources: CBIC — Notification 9/2025-Central Tax (Rate), goods rate schedules · Commercial Taxes Directorate, West Bengal — 56th GST Council rate synopsis · PIB — Simplified GST for Growth of Indian Commerce and Trade (56th GST Council)

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