A garment manufacturer's invoice must decide the GST rate piece by piece. From 22 September 2025, apparel of chapter 61 (knitted) and chapter 62 (woven) is taxed at 5% when the sale value is up to ₹2,500 per piece and 18% above that. So the invoice should show the style number, size set, quantity in pieces, per-piece rate and HSN, with high-value and low-value styles on separate lines rather than averaged across a lot.
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Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a garment manufacturer invoice needs
Style / article number
Buyers and retailers track garments by style code. One style can appear on dozens of invoices over a season, and the style number is what links the invoice to the purchase order and the packing list.
Size-wise quantity
Show size breakup such as S-M-L-XL or 28-30-32-34. The rate is per piece, but receiving stores check by size, and short supply of one size is the most common receipt dispute.
Fabric composition
Mention cotton, polyester, blend or denim with GSM if relevant. It supports the HSN at the 6-digit level and is needed for the buyer's own care labels and product listings.
Per-piece value
Print the per-piece transaction value clearly, after trade discount. It is this value that decides whether the line falls in the 5% or 18% band, so it must be visible to anyone checking.
Cartons and pack ratio
Garments ship in ratio packs per carton. Carton numbers and pieces per carton let the buyer verify receipt without opening every box.
Brand / label
If you manufacture under a buyer's brand, note the brand and that labels were supplied by the buyer. This helps separate own-brand sales from private-label manufacturing.
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)
Notification 9/2025-Central Tax (Rate) puts articles of apparel and clothing accessories of chapters 61 and 62 in the 5% schedule when the sale value does not exceed ₹2,500 per piece, and in the 18% schedule when it does. The test is applied to each piece's sale value, not to the invoice total. A wholesale invoice for 500 T-shirts worth several lakh rupees still attracts 5% if each T-shirt is billed below the limit. Discounts shown on the invoice reduce the value; a later discount does not change the rate already charged.
Sets and combo packs
A kurta-pyjama set or a three-piece suit sold as one unit is generally valued as one item for the threshold test. Splitting a set into separate lines to bring each part below ₹2,500 is risky when the items are always sold together. Price and describe sets the way you actually sell them, and keep that consistent across invoices, price lists and catalogues.
Inverted duty and refunds
Fabric for most garments is taxed at 5%, but trims, packing material, machinery and some job-work services may carry 18%. A garment unit selling mostly at 5% can accumulate unused input tax credit. Section 54(3) allows a refund of unutilised credit arising from an inverted rate structure, using the formula in Rule 89(5) and subject to any restrictions notified for specific goods. Accurate HSN-wise invoices on both purchases and sales are the starting point for any such claim.
Job work for stitching, embroidery and washing
Garment makers commonly send cut pieces to fabricators for stitching, embroidery, printing or washing. These go out on a delivery challan under section 143 and must come back within one year. The job worker bills only the job-work charge, not the fabric. Inter-state movement of goods to a job worker needs an e-way bill regardless of value, and the challans should be reported in ITC-04.
Common billing mistakes
✕Applying 5% to an entire mixed invoice because the average piece value is low, even though some styles are priced above ₹2,500 per piece.
✕Showing a lump-sum 'garments' line with total quantity, so nobody can check the per-piece value that decides the rate.
✕Using chapter 61 and chapter 62 headings interchangeably without checking whether the garment's fabric is knitted or woven.
✕Sending cut panels to a stitching unit without a delivery challan, which makes the movement look like an unrecorded sale.
Garment manufacturer GST invoice: FAQ
What is the GST on readymade garments from 22 September 2025?
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Apparel of chapters 61 and 62 is taxed at 5% when the sale value is up to ₹2,500 per piece and 18% when it is above ₹2,500 per piece. Earlier the split was 5% and 12% around ₹1,000. Bill each style on its own line so the per-piece value is visible.
Is knitted and woven clothing billed under different HSN?
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Yes. Knitted or crocheted garments such as T-shirts and track pants fall under chapter 61, while woven garments such as shirts, trousers, jeans and kurtas fall under chapter 62. The rate test is the same, but GSTR-1 needs the right chapter.
Does the threshold use MRP or the invoice price?
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The test is on the sale value of the supply, which for a manufacturer is the transaction value per piece on the invoice, not the MRP printed on the tag. A garment with a ₹2,999 MRP sold to a retailer at ₹1,600 is taxed at 5% on that sale.
Can I raise one invoice for several stores of a retail chain?
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No. A tax invoice is issued to one recipient GSTIN with one place of supply. If a retailer has stores in different states with separate GSTINs, each consignment to each GSTIN needs its own invoice.