A saree shop's main product is woven fabric, not apparel. Unstitched sarees of silk, cotton or man-made fibre are classified as woven fabrics in chapters 50 to 55 and taxed at 5%, without the 2,500 rupee test that applies to readymade garments. The invoice should show fibre and weave, length, any Silk Mark or handloom mark reference, and separate lines for readymade blouses, petticoats and stitching or fall-pico work, because those follow different rules.
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Kanjeevaram pure silk saree with zari, 6.3 m (Silk Mark)
5007
1 PCS
18,500.00
18,500.00
5%
Cotton handloom saree, 5.5 m
5208
2 PCS
1,650.00
3,300.00
5%
Printed georgette saree (man-made fibre), 5.5 m
5407
1 PCS
2,950.00
2,950.00
5%
Readymade blouse, woven, size 36
6206
1 PCS
899.00
899.00
5%
Cotton petticoat, woven
6204
1 PCS
350.00
350.00
5%
Taxable value
₹25,999.00
GST (CGST + SGST, or IGST if inter-state)
₹1,299.96
Invoice total
₹27,298.96
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a saree shop invoice needs
Fibre and weave
Sarees are classified by fibre: silk, cotton, or man-made textiles such as polyester and georgette. Naming the fibre and weave, such as Kanjeevaram silk or cotton handloom, supports the HSN and confirms what the customer bought.
Length and blouse piece
A saree may come with or without an attached blouse piece. Recording the length and whether a running blouse piece is included avoids disputes and clarifies what is still fabric rather than apparel.
Silk Mark or handloom mark
Pure silk and handloom sarees often carry Silk Mark or Handloom Mark labels. Quoting the label number on the bill reassures customers who pay a premium for authenticity.
Zari and embellishment details
Zari, embroidery and stone work drive saree prices. Describing the work on the invoice explains the value and helps when the customer later compares or exchanges the saree.
Stitching and fall-pico line
Blouse stitching and fall-pico finishing are separate jobs. Showing them on their own lines keeps the fabric line clean and makes the tax treatment of the stitching work visible.
Delivery date for stitched items
When a blouse is stitched, the customer collects it later. The promised delivery date on the bill sets expectations and records when the stitched item is handed over.
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)
Unstitched sarees are classified as woven fabrics according to their fibre: woven fabrics of silk under 5007, woven fabrics of cotton under 5208 to 5212, and woven fabrics of man-made textile materials under 5407 and 5408. Notification 9/2025-Central Tax (Rate) lists all of these in the 5% schedule. The 2,500 rupee per-piece threshold in that notification applies to articles of apparel of chapters 61 and 62 and made-up articles of chapter 63, not to fabrics. So an 18,500 rupee silk saree is taxed at 5%, while an equally priced readymade designer lehenga, which is apparel, would be at 18%. Classify each product by what it is, not by how it is worn.
Readymade blouses and petticoats
Saree shops often sell readymade blouses, petticoats and shapewear. These are articles of apparel of chapter 61 or 62, so they follow the per-piece test: 5% up to 2,500 rupees and 18% above. A designer blouse priced at 3,200 rupees after discount is therefore taxed at 18% even though the saree it matches is at 5%. Keep readymade garments in a separate item group with their own HSN, such as 6206 for woven women's blouses, so that the per-piece test is applied automatically by the billing software. Print the per-piece value on every blouse line.
Blouse stitching and fall-pico
When the shop stitches a blouse from the customer's blouse piece, or fixes fall and pico, it is doing work on the customer's own goods, which is a service rather than a sale of fabric. Show such work on its own line and confirm the service classification and rate with your adviser before setting it up, rather than folding it into the saree's 5% line. If, instead, the shop sells a saree with blouse stitching included for one price, the main supply is the saree and the stitching is generally ancillary to it, which should be described clearly on the bill.
Handloom, Silk Mark and composition
Handloom and pure silk sarees are often sold with Silk Mark labels issued under the Central Silk Board's scheme or with Handloom Mark labels. These are quality assurances, not GST requirements, but recording them on the bill helps customers and supports the shop's premium pricing. Small saree shops selling only within the state may consider the composition scheme, but many sell to boutiques and resellers who want input tax credit, which a composition dealer cannot pass on. Weigh the share of B2B sales before opting in. A composition dealer also cannot sell to buyers in other states.
Common billing mistakes
✕Applying the 2,500 rupee apparel threshold to unstitched sarees and billing expensive silk sarees at 18% instead of 5% as woven fabric. in stock.
✕Billing readymade designer blouses at the saree's 5% rate even when their per-piece price after discount exceeds 2,500 rupees. in the shop.
✕Folding blouse stitching and fall-pico charges into the saree line instead of showing the work separately on the invoice. given to the customer.
✕Describing every saree simply as saree with one HSN, so silk, cotton and synthetic sales cannot be reported correctly by heading.
Saree shop GST invoice: FAQ
What is the GST rate on sarees?
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Unstitched sarees are woven fabrics and are taxed at 5%, whether silk (5007), cotton (5208 to 5212) or man-made fibre (5407, 5408). The 2,500 rupee apparel threshold does not apply to them, so even a high-value silk saree is taxed at 5%.
Does the Rs 2,500 rule apply to sarees?
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No. The 2,500 rupee per-piece rule applies to readymade apparel of chapters 61 and 62 and made-up articles of chapter 63. Sarees sold as fabric fall under chapters 50 to 55, where woven fabrics are at 5%. Readymade blouses and petticoats sold with sarees do follow the per-piece rule.
Which HSN code should I use for a silk saree?
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Use heading 5007 for woven fabrics of silk. Cotton sarees fall under 5208 to 5212 depending on weight and composition, and synthetic sarees such as georgette or chiffon in polyester under 5407 or 5408. Print at least four digits on B2B invoices.
How should blouse stitching be billed?
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Show blouse stitching and fall-pico as separate lines from the saree. Stitching the customer's own blouse piece is a service, so its classification and rate differ from the saree fabric. Confirm the rate with your adviser, and print the delivery date for stitched items on the bill.