Raw jute fibre, raw or processed but not spun, is exempt under Notification 10/2025, but everything a jute unit makes from it is at 5%: jute yarn (5307), woven jute fabric and hessian (5310), jute twine and rope (5607), jute sacks and other made-ups up to Rs 2,500 per piece, and jute handbags and shopping bags (4202 22 30). The invoice should show product, construction (porter, shots per inch), weight per bag or per metre, size, print, bale number and any government order reference.
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Extra fields a jute products maker invoice needs
Construction and weight
Hessian and sacking are sold by porter and shots, grams per square metre and weight per bag. These details define the product and are tested by bulk buyers such as food procurement agencies before acceptance.
Bag size and stitching
B-twill sacks, hessian bags and shopping bags differ by size, hemming and handle type. Size and stitching details let buyers match the delivery with the order and printing artwork.
Bale and lot numbers
Sacks are delivered in bales of 500 or so. Bale numbers allow sampling, inspection and tracing of rejected bales back to a production lot.
Printing and branding
Shopping bags and promotional bags are printed with buyers' logos. Recording print colours and artwork reference avoids disputes and confirms the per-piece price.
Value per piece for made-ups
Jute made-ups are at 5% when the sale value per piece does not exceed Rs 2,500. Showing the per-piece value proves the slab, especially for designer bags.
Procurement order reference
Jute mills supplying sacks to state procurement agencies quote the supply order or indent number, which links the invoice to the government contract.
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 10/2025-Central Tax (Rate) exempts jute fibres, raw or processed but not spun, of heading 5303. Schedule I of Notification 9/2025 lists yarn of jute and other bast fibres (5305 to 5308), woven fabrics of other vegetable textile fibres (5309 to 5311), twine, cordage and ropes including jute twine (5607), and made-up textile articles of chapter 63 of sale value up to Rs 2,500 per piece at 5%. Hand bags and shopping bags of jute (4202 22 30) are separately listed at 5%. A jute mill therefore buys exempt raw jute and sells 5% products.
Plastic sacks are not jute sacks
Schedule II taxes woven and non-woven bags and sacks of polyethylene or polypropylene strips of headings 3923 or 6305 at 18%, and flexible intermediate bulk containers of 6305 32 00 are excluded from the 5% made-ups entry. A unit making both jute and HDPE bags must keep separate items and must not apply the jute rate to laminated plastic sacks or jute-look polypropylene bags.
Raw jute purchases and input credit
Raw jute bought from farmers and jute traders is exempt, so no input tax credit arises on the main raw material. Credit is available on batching oil, spare parts, power equipment and packing. Because output is at 5% and many inputs such as machinery spares are taxed at 18%, jute mills can accumulate credit and should track it for possible inverted duty refund under the rules applicable to goods.
Supplies to government procurement
Jute sacks supplied to state food procurement agencies are taxable at 5% like other sacks. The supply order usually fixes a price inclusive or exclusive of GST, and the invoice must follow the order. Where the agency is registered, it can claim credit. Mills supplying multiple states issue IGST invoices for inter-state deliveries.
E-way bills for bale despatches
Jute sacks and hessian move in truckloads of bales from mill to buyer or to a procurement centre. Each consignment of taxable goods above Rs 50,000 needs an e-way bill, and raw jute arriving at the mill comes with its own purchase documents. Large mills that also cross the e-invoice threshold must generate an IRN for B2B invoices before the truck leaves, and the e-way bill can be generated from the same data. Bale numbers on the invoice and packing list make physical verification quick at the buyer's godown.
Common billing mistakes
✕Charging 5% on raw jute fibre, which is exempt before spinning.
✕Billing polypropylene or laminated plastic sacks at the jute sack rate.
✕Selling designer jute bags above Rs 2,500 per piece at 5% under the chapter 63 entry without checking the value or the 4202 entry.
✕Missing construction and weight details that procurement agencies test.
✕Not tracking inverted duty credit on machinery spares and stores.
Jute products maker GST invoice: FAQ
Is raw jute taxable under GST?
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No. Jute fibres, raw or processed but not spun, are exempt under Notification 10/2025-Central Tax (Rate).
What is the GST on jute bags?
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Jute shopping bags and handbags of 4202 22 30 are taxed at 5%. Jute sacks of chapter 63 are taxed at 5% when their sale value does not exceed Rs 2,500 per piece.
What is the GST on hessian cloth?
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Woven jute fabric including hessian is taxed at 5% under Schedule I of Notification 9/2025.
What is the HSN for jute yarn?
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Jute yarn falls under heading 5307, yarn of jute or other textile bast fibres.
Are HDPE sacks also 5%?
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No. Woven bags and sacks of polyethylene or polypropylene are in Schedule II at 18%.