Textiles fall in HSN Chapters 50 to 63. From 22 September 2025, most yarns and woven or knitted fabrics are taxed at 5% GST. Apparel in Chapters 61 and 62 and made-ups in Chapter 63 are taxed at 5% when the sale value is up to ₹2,500 per piece and 18% above ₹2,500, under Notification 9/2025 (Rate).
Textiles are one of the largest categories of goods sold by small Indian businesses, from spinning mills and weavers to wholesalers, boutiques and online sellers. The HSN code decides not just what goes on the invoice but which GST rate applies, and for clothing the rate also depends on the price of each piece. This guide lists the main textile HSN codes with rates verified against the rate notification effective 22 September 2025.
For general background, see what is HSN code.
Which HSN chapters cover textiles and clothing?
Textiles form Section XI of the tariff, Chapters 50 to 63. The chapters follow the fibre first, then the product stage:
| Chapter | Covers |
|---|---|
| 50 | Silk |
| 51 | Wool and animal hair |
| 52 | Cotton |
| 53 | Other vegetable fibres (flax, jute, etc.) |
| 54 | Man-made filaments |
| 55 | Man-made staple fibres |
| 56 | Wadding, felt, nonwovens, cordage |
| 57 | Carpets and floor coverings |
| 58 | Special woven fabrics, lace, embroidery |
| 59 | Coated and technical fabrics |
| 60 | Knitted or crocheted fabrics |
| 61 | Apparel, knitted or crocheted |
| 62 | Apparel, not knitted or crocheted |
| 63 | Other made-up articles, worn clothing, rags |
The first big question is always: knitted or not knitted? T-shirts, most innerwear and track pants are usually knitted (Chapter 61). Formal shirts, trousers, sarees made into garments and most jackets are usually woven (Chapter 62).
What are the GST rates on yarn and fabric?
The following entries appear in Schedule I (5% IGST, i.e. 2.5% CGST + 2.5% SGST) of Notification 9/2025:
| HSN | Description (as in the notification) | GST |
|---|---|---|
| 5004 to 5006 | Silk yarn | 5% |
| 5007 | Woven fabrics of silk or of silk waste | 5% |
| 5106 to 5110 | Yarn of wool or of animal hair | 5% |
| 5111 to 5113 | Woven fabrics of wool or of animal hair | 5% |
| 5204 | Cotton sewing thread | 5% |
| 5205 to 5207 | Cotton yarn [other than khadi yarn] | 5% |
| 5208 to 5212 | Woven fabrics of cotton | 5% |
| 5309 to 5311 | Woven fabrics of other vegetable textile fibres | 5% |
| 5402 to 5406 | Synthetic or artificial filament yarns | 5% |
| 5407, 5408 | Woven fabrics of man-made textile materials | 5% |
| 5509 to 5511 | Yarn of man-made staple fibres | 5% |
| 5512 to 5516 | Woven fabrics of man-made staple fibres | 5% |
| 60 | Knitted or crocheted fabrics [all goods] | 5% |
Entries for Chapter 56 items such as wadding, felt and nonwovens also appear in Schedule I, but some lines are carved out (for example, cigarette filter rods, 5601 22 00, sit in Schedule II at 18%). For any Chapter 56 to 59 item, check the exact entry in the current notification.
What are the GST rates on readymade garments?
Apparel is taxed by value per piece:
| HSN | Description | Sale value per piece | GST |
|---|---|---|---|
| 61 | Apparel and clothing accessories, knitted or crocheted | Up to ₹2,500 | 5% |
| 61 | Same | Above ₹2,500 | 18% |
| 62 | Apparel and clothing accessories, not knitted or crocheted | Up to ₹2,500 | 5% |
| 62 | Same | Above ₹2,500 | 18% |
| 63 (other than 6305 32 00, 6305 33 00, 6309) | Other made-up textile articles, sets | Up to ₹2,500 | 5% |
| 63 (other than 6309) | Same | Above ₹2,500 | 18% |
| 6309 / 6310 | Worn clothing and other worn articles; rags | Any | 5% |
Made-ups in Chapter 63 include bed linen, curtains, towels and similar household textiles. Note the exclusions: flexible intermediate bulk containers (6305 32 00) appear separately in Schedule II at 18%, so do not assume every Chapter 63 item follows the ₹2,500 rule.
Footwear (Chapter 64) follows a similar pattern: up to ₹2,500 per pair at 5%, and headings 6401 to 6405 above that in Schedule II at 18%.
Worked example: a boutique's GST invoice
A Jaipur boutique sells to a customer in Jaipur (intra-state, CGST + SGST):
| Item | HSN | Price per piece | Qty | Rate | Taxable value | CGST | SGST |
|---|---|---|---|---|---|---|---|
| Cotton kurta (woven) | 6204 | ₹1,850 | 2 | 5% | ₹3,700 | ₹92.50 | ₹92.50 |
| Embroidered silk lehenga (woven) | 6204 | ₹14,000 | 1 | 18% | ₹14,000 | ₹1,260 | ₹1,260 |
| Knitted cotton T-shirt | 6109 | ₹700 | 3 | 5% | ₹2,100 | ₹52.50 | ₹52.50 |
| Cotton bedsheet set | 6302 | ₹2,600 | 1 | 18% | ₹2,600 | ₹234 | ₹234 |
| Total | ₹22,400 | ₹1,639 | ₹1,639 |
Invoice total = ₹22,400 + ₹3,278 = ₹25,678.
Notice how the same headings (6204) carry two rates, and how a bedsheet set priced just above ₹2,500 moves to 18%. A ₹2,450 set would have been at 5%. Your billing system must apply the rate per piece, not per invoice or per HSN.
How do I classify common textile products?
A quick guide to frequent items (confirm the full code with the portal search):
| Product | Likely chapter / heading |
|---|---|
| T-shirts, singlets, vests (knitted) | 6109 |
| Men's woven shirts | 6205 |
| Women's woven suits, dresses, kurtas, skirts, trousers | 6204 |
| Men's woven suits, trousers | 6203 |
| Jerseys, pullovers, cardigans (knitted) | 6110 |
| Shawls, scarves, mufflers (not knitted) | 6214 |
| Bed linen, table linen, toilet linen | 6302 |
| Curtains | 6303 |
| Woven cotton fabric by the metre | 5208 to 5212 |
| Polyester filament fabric by the metre | 5407 |
Step-by-step classification advice is in how to find HSN code.
How should textile businesses set up billing?
- Create items by product and price band. If the same design sells at ₹2,400 in one size and ₹2,700 in another, the rates differ.
- Store the condition with the item, for example "≤ ₹2,500/piece → 5%, else 18%". Good software applies this automatically on the actual selling price.
- Show HSN at the right digits — 4 if last year's AATO was up to ₹5 crore, 6 above that. See HSN code digits on invoice.
- Handle returns with credit notes carrying the same HSN and rate as the original sale. See credit note under GST.
- Track stock by size and colour so that price-band changes are visible.
Billing Software by Betterwork can apply rates from your item master and print HSN on each line, and its inventory module tracks stock by item so a price change does not get lost.
What about job work and stitching services in textiles?
Not every textile business sells goods. Many work on fabric owned by someone else, such as dyeing, printing, embroidery or stitching. That is a service, not a sale of goods, so it needs a SAC rather than an HSN. Job work services on goods owned by another person fall under the manufacturing-services heading 9988, and tailoring is a separate service entry. In the September 2025 amendment, Notification 15/2025-Central Tax (Rate) set the central tax on tailoring services at 2.5% (5% in total). For job-work rates, check the current services rate notification for the exact entry.
Practical points for job workers:
- Issue a tax invoice for the job charges with a SAC, not the fabric's HSN.
- Goods sent for job work move on a delivery challan; see delivery challan under GST.
- Keep a register of fabric received and returned so quantities reconcile.
How does the ₹2,500 rule work with bundles and sets?
Sellers often ask how to apply the per-piece test to combos. Some practical guidance:
- Multi-packs of identical items (for example, a pack of three T-shirts for ₹1,500): the value per piece is ₹500, so 5% applies.
- Suits and ensembles sold as one article at one price: the test is applied to that article's value. A three-piece suit at ₹7,500 is above ₹2,500, so 18%.
- Separately priced items on one bill: each item is tested separately.
- Free gifts with a garment: if the gift is genuinely free, it is not part of the garment's price, but stock of gifted items has its own input tax credit implications.
When in doubt, price items separately so the rate for each is clear on the invoice.
Quick reference: from fabric to finished garment
| Stage | Typical HSN | Rate |
|---|---|---|
| Cotton yarn | 5205 | 5% |
| Grey or finished woven cotton fabric | 5208 | 5% |
| Knitted fabric | 60 | 5% |
| Shirt at ₹1,200 | 6205 | 5% |
| Shirt at ₹3,000 | 6205 | 18% |
How should a garment shop handle discounts and the price threshold?
For apparel, the rate depends on the value of each piece, so discounts and offers need care.
- Apply the rate per piece, not per bill. A bill of five shirts is checked shirt by shirt against the threshold.
- Use the price after discounts shown on the invoice. A discount given on the invoice at the time of sale reduces the taxable value, and the reduced value is what you compare with the threshold.
- Spread bill-level discounts carefully. If you give a flat amount off the whole bill, allocate it across the items so each piece's value is clear.
- Re-run the check during sales. A garment above the threshold at full price may fall below it during an end-of-season sale.
Worked example
A Surat shop sells a kurta tagged at ₹2,800 and offers 15% off on the invoice. The discounted value is ₹2,380, which is within the ₹2,500 threshold, so the 5% band applies to that piece if the price excludes GST. The shop's software should calculate the rate after the discount.
Common mistakes in textile GST
- Applying the ₹2,500 test to the invoice total. It is per piece (or per pair for footwear).
- Treating all Chapter 63 items the same. Some lines, such as 6305 32 00, are excluded from the 5% entry.
- Mixing up knitted and woven. A knitted polo shirt is 6105 or 6109; a woven shirt is 6205.
- Using old 12% rates. The pre-September-2025 12% band for higher-priced garments no longer applies; the split is now 5% and 18%.
- Ignoring later amendments. Notification 9/2025 has been amended since (for example, by Notification 19/2025 from 1 February 2026). Recheck your items against the latest consolidated text.
- Forgetting inverted duty structures. Where input tax is higher than output tax, refund rules may apply; ask your adviser before assuming.
Key takeaways
- Textiles span HSN Chapters 50 to 63; decide fibre, stage and knitted/woven first.
- Most yarns and fabrics are at 5% from 22 September 2025.
- Apparel (61, 62) and most made-ups (63) are 5% up to ₹2,500 per piece and 18% above.
- Apply the value test per piece at the actual selling price.
- Keep codes, conditions and rates in your item master and recheck after every amendment.
This guide is general information, not tax advice. Rules last checked on 20 October 2026; confirm with your tax professional for your situation.