The 2,500 rupee test for made-up textiles
Notification 9/2025-Central Tax (Rate) lists other made-up textile articles and sets of chapter 63, such as bed linen, table linen, toilet linen, curtains and furnishing articles, at 5% when the sale value does not exceed 2,500 rupees per piece and at 18% when it does. The test is applied to the piece or set as sold, so a bedsheet set of one sheet and two pillow covers priced at 1,499 rupees is at 5%, while a premium set at 3,999 rupees is at 18%. Discounts shown on the invoice at the time of sale reduce the value used for the test under section 15(3). Configure the billing software to choose the rate from the actual price.
Carpets, rugs and floor coverings at 5%
Chapter 57 covers carpets and other textile floor coverings, whether knotted, woven, tufted or of felt, and Notification 9/2025 lists headings 5701 to 5705 in the 5% schedule, along with coir mats and handloom durries. Unlike made-ups of chapter 63, carpets have no price threshold, so a hand-knotted carpet worth a lakh of rupees is taxed at 5%. Make sure rugs and dhurries are coded under chapter 57 and not under a chapter 63 code, where an expensive piece would wrongly attract 18%. Floor mats of plastic or rubber are not textile floor coverings and follow their own headings.
Cushions, pillows, quilts and mattresses
Heading 9404 covers mattresses, quilts, cushions, pillows and similar articles that are stuffed or fitted with filling, and Notification 9/2025 keeps them at 18%. It carves out cotton quilts and products wholly of quilted textile material within a value of 2,500 rupees per piece, and coir products other than coir mattresses, at 5%. A cushion cover sold empty is a chapter 63 made-up subject to the 2,500 rupee test, while the same cover sold with a filler is a filled cushion of 9404 at 18%. Bill covers and filled cushions as different items.
Stitching curtains and installation
Made-to-measure curtains are a large part of furnishing sales. When the shop sells fabric and stitches it into curtains for the customer for one price, the customer receives finished curtains, which are made-up articles of chapter 63 subject to the per-piece test on the final price. Curtain rods, tracks and blinds are separate goods with their own headings and rates, and installation at the customer's home is a service. If the customer supplies their own fabric for stitching, the shop supplies a stitching service only, which must be billed under its own SAC.