Agri, textiles and crafts

GST invoice format for a silk reeling and twisting unit (sericulture)

The silk chain changes tax status at each step. Silkworm layings and cocoons (5001), raw silk not thrown (5002) and silk waste (5003) are exempt under Notification 10/2025. Silk yarn of 5004 to 5006 is taxed at 5%, and when it is made from raw silk or cocoons and sold to a registered buyer, the buyer pays the tax under reverse charge. The invoice must show denier, reeling type (charkha, cottage basin, multi-end, automatic), lot, cocoon market receipt, weight and the reverse charge declaration.

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Sample silk reeling unit invoice

Description	HSN/SAC	Qty	Rate (₹)	Taxable (₹)	GST
Mulberry silkworm cocoons, bivoltine	5001	200 KGS	650.00	1,30,000.00	0%
Raw silk, multi-end reeled, 20/22 denier, not thrown	5002	25 KGS	5,600.00	1,40,000.00	0%
Silk reeling waste	5003	40 KGS	450.00	18,000.00	0%
Twisted silk yarn (organzine), 2-ply, from raw silk, reverse charge	5004	10 KGS	6,400.00	64,000.00	5%
Taxable value				₹3,52,000.00
GST (CGST + SGST, or IGST if inter-state)				₹3,200.00
Invoice total				₹3,55,200.00

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

Extra fields a silk reeling unit invoice needs

Cocoon market lot and receipt: Reelers buy cocoons in government cocoon markets by auction. The market receipt number on the reeler's records and invoices links raw silk lots to the cocoons from which they were reeled and supports traceability for weavers.
Denier and evenness: Raw silk and twisted yarn are graded by denier, such as 20/22 or 28/30, and by evenness and neatness test results. Printing these on the invoice lets the weaver or twister check that the yarn suits the loom and fabric being made.
Reeling method: Charka, cottage basin, multi-end and automatic reeling machines produce raw silk of different quality, evenness and price. The method on the bill describes the product honestly and helps buyers compare lots.
Weight in skeins or hanks: Raw silk is sold by kg in skeins or books. Number of skeins and net weight after conditioning, if tested, help the buyer reconcile the delivery.
Reverse charge declaration: For silk yarn made from raw silk or cocoons sold to a registered person, tax is payable by the recipient. The invoice should say 'tax payable on reverse charge: yes' so the buyer pays the 5%.
Silk waste category: Pierced cocoons, reeling waste and noil are sold as silk waste to spun silk mills. Describing the waste type supports its exempt classification and its price.

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 silk reeling unit

Cocoons, raw silk and waste are exempt

Notification 10/2025-Central Tax (Rate) exempts silkworm laying and cocoons of heading 5001, raw silk of 5002 and silk waste of 5003. A reeler who buys cocoons and sells raw silk deals only in exempt goods and need not register for that activity. The rate changes only when raw silk is thrown or twisted into silk yarn, which falls in Schedule I of Notification 9/2025 at 5% along with woven silk fabric of 5007.

Reverse charge on silk yarn

The reverse charge notification on goods covers silk yarn of headings 5004 to 5006 supplied by any person who manufactures silk yarn from raw silk or silkworm cocoons for supply of silk yarn, where the buyer is a registered person. The registered weaver or trader receiving the yarn pays the 5% tax and can then claim it as input tax credit. The twister's invoice therefore shows the tax amount for information but marks it as payable by the recipient. Sales of such yarn to unregistered weavers are under forward charge if the twister is registered.

Job work twisting

Many twisting units twist raw silk owned by weavers or traders and charge a twisting fee. Job work in relation to textiles of chapters 50 to 63 is taxed at 5% under Notification 15/2025. The raw silk and twisted yarn should move under delivery challans, and the twister bills only the fee. The yarn remains the principal's property, so no reverse charge sale arises.

Rearing services to sericulture farmers

Chawki rearing centres that rear young silkworms for farmers provide a service in relation to rearing of life forms of animals. Such services, when they are agricultural operations directly related to production of agricultural produce, fall within support services to agriculture in entry 24 of Notification 11/2017 and are nil-rated. Cocoons are the farmer's agricultural produce until reeled.

Common billing mistakes

Charging 5% on raw silk not thrown, which is exempt under heading 5002.
Collecting forward-charge tax on twisted silk yarn sold to a registered weaver, when the recipient must pay under reverse charge.
Raising sale invoices for raw silk twisted on job work for a trader.
Leaving denier and reeling method off the invoice, so quality disputes with weavers cannot be settled from the document.
Billing silk waste as yarn because it is sold to spun silk mills.

Silk reeling unit GST invoice: FAQ

Is raw silk taxable under GST?

Raw silk not thrown, of heading 5002, is exempt under Notification 10/2025-Central Tax (Rate). Silkworm cocoons and silk waste are also exempt.

What is the GST on silk yarn?

Silk yarn of headings 5004 to 5006 is taxed at 5% under Schedule I of Notification 9/2025-Central Tax (Rate).

Is reverse charge applicable to silk yarn?

Yes, when silk yarn is supplied by a manufacturer who makes it from raw silk or cocoons to a registered person. The recipient pays the tax.

What is the GST on silk twisting job work?

Job work on textiles of chapters 50 to 63, which includes twisting raw silk owned by another person, is taxed at 5%.

Does a silk reeler need GST registration?

A reeler selling only cocoons, raw silk and silk waste deals in exempt goods and need not register. Once the unit also twists and sells silk yarn, it should check the threshold, since exempt sales count in aggregate turnover.

Sources: Gazette of India: Notification 10/2025-Central Tax (Rate), exempt goods · Gazette of India: Notification 9/2025-Central Tax (Rate), goods rate schedules · Maharashtra GST: Notification 4/2017-State Tax (Rate), reverse charge on goods · Gazette of India: Notification 15/2025-Central Tax (Rate), services rates

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