GST invoice format for a textile mill (yarn and fabric)
A spinning or weaving mill's GST invoice should describe yarn by count, ply, fibre and lot, and fabric by construction, width, GSM and metres. From 22 September 2025, cotton yarn (5205 to 5207), woven cotton fabric (5208 to 5212), manmade filament and staple yarns (5402 to 5406, 5509 to 5511) and woven manmade fabrics (5407, 5408, 5512 to 5516) are all in the 5% schedule. Bale or roll numbers, net weight and the e-way bill details complete a mill invoice.
Download this format free
Pre-filled with textile mill sample items and fields. No sign-up.
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a textile mill invoice needs
Yarn count and ply
State Ne count and ply, such as 30s/1 combed or 2/40s. Count decides the price per kilogram, and buyers test incoming yarn against the declared count.
Fibre blend
Mention 100% cotton, polyester-cotton 65/35, viscose or nylon. The blend also decides the HSN chapter: cotton yarn under 52 and manmade yarn under 54 or 55.
Lot number
Yarn and fabric are dyed and processed in lots. Weavers and garment makers avoid mixing lots to prevent shade variation, so the lot number on the invoice is essential.
Bale or roll numbers
List bale numbers for yarn and roll numbers for fabric. Each bale or roll has its own weight or metre count, and claims for shortage or damage are raised per bale or roll.
Fabric construction and width
For fabric, record ends and picks per inch, width in inches and GSM. Garment buyers order to construction and width, and price depends on both.
Gross and net weight
Yarn is priced per kilogram of net weight. Show gross and net weight so packaging weight is not charged as yarn.
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) places cotton yarn other than khadi yarn, woven cotton fabrics, synthetic or artificial filament yarns, yarn of manmade staple fibres, woven fabrics of manmade textile materials and manmade staple fibres in the 5% schedule. The earlier 12% and 18% rates on several manmade fibre and yarn items no longer apply to the headings named there. This reduces the inverted duty problem that long affected the manmade textile chain, but mills should still check each fibre and yarn heading, because some processing chemicals, machinery and spares remain at 18%.
Chapter depends on fibre content
Blended yarns and fabrics are classified by the fibre that predominates by weight. A 65/35 polyester-cotton yarn is a manmade staple fibre yarn under chapter 55, not cotton yarn under chapter 52. Invoices that describe only 'PC yarn' without the blend ratio leave the classification open. State the blend precisely, and keep test reports on file for the lots supplied.
Job work in the textile chain
Mills regularly send yarn for sizing, dyeing or doubling, and fabric for processing, to job workers. These movements go on delivery challans under section 143, the goods must return within one year, and inter-state movement to a job worker needs an e-way bill regardless of value. Job workers bill only for processing. Report challans in ITC-04 as required, because inputs lying with job workers are a common audit point.
E-way bills and transporter details
Yarn and fabric consignments routinely exceed ₹50,000 in value. Generate the e-way bill with the transporter ID and vehicle number before dispatch, and update Part B if goods are transshipped. Bale-wise packing lists should travel with the invoice so the buyer can check each bale against the e-way bill quantity.
Common billing mistakes
✕Describing blended yarn only as 'PC yarn' or 'PV yarn' without the blend ratio, leaving its chapter uncertain.
✕Continuing to charge 12% or 18% on manmade yarn or fabric headings that moved to 5% from 22 September 2025.
✕Billing total kilograms without bale numbers, so shortage claims cannot be traced to a specific bale.
✕Sending yarn for dyeing without a delivery challan, which makes the stock at the dyer look unaccounted for.
✕Charging packing material weight as yarn by invoicing gross weight instead of net weight.
Textile mill GST invoice: FAQ
What is the GST rate on cotton yarn in 2025?
+
Cotton yarn under headings 5205 to 5207, other than khadi yarn, is in the 5% schedule of Notification 9/2025-Central Tax (Rate) from 22 September 2025.
Is polyester yarn taxed at 5% now?
+
Synthetic or artificial filament yarns under headings 5402 to 5406 and yarn of manmade staple fibres under 5509 to 5511 are listed in the 5% schedule after the rate rationalisation.
Should a mill invoice show yarn count?
+
GST law does not require it, but every buyer expects it. Count, ply and blend define the product and its price, and they support the HSN classification if questioned.
How do I bill fabric sold in rolls of different lengths?
+
Bill in metres with roll-wise lengths in a packing list attached to the invoice. The invoice total metres must match the sum of rolls and the e-way bill quantity.
Can I claim a refund of accumulated credit?
+
If credit still accumulates because some inputs are taxed above 5%, a refund under section 54(3) may be available, subject to the Rule 89(5) formula and any notified restrictions for particular goods. Check the current position for your specific headings before filing.
How should waste cotton and yarn waste be invoiced?
+
Comber noil, soft waste and hard waste are sold to open-end spinners and other buyers. Each sale needs its own tax invoice with the waste heading and the rate that applies to it, separate from the yarn invoice, so the mill's turnover and HSN summary stay accurate.