HSN codes
HSN codes and GST rates for textiles and garments
Sarees and fabric bill by the fabric's fibre, garments and made-ups bill by the piece and its price. Here are the codes a mill, weaver or garment unit uses most.
In short
A saree is billed as fabric, so a silk saree usually sits under HSN 5007 and a cotton one under 5208. Garments fall in chapters 61 and 62. SimpleERP stores the HSN and rate on each product.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
The codes and usual rates
| HSN | Goods | Usual GST rate | Notes |
|---|---|---|---|
| 5007 | Silk fabric, including silk sarees | 5% | Sarees are billed as woven fabric of their fibre |
| 5208 | Cotton woven fabric up to 200 g/m², cotton sarees | 5% | Heavier cotton fabric goes to 5209 |
| 5209 | Cotton woven fabric over 200 g/m² | 5% | Denim and drill |
| 5407 | Synthetic filament fabric, polyester sarees | 5% | Includes georgette and chiffon of polyester |
| 6006 | Knitted or crocheted fabric | 5% | Bought by garment units for T-shirts and innerwear |
| 6104 | Women's knitted suits, dresses and skirts | 5% up to ₹2,500 a piece, else 18% | Sale value per piece decides the rate |
| 6109 | T-shirts and vests, knitted | 5% up to ₹2,500 a piece, else 18% | Sale value per piece decides the rate |
| 6203 | Men's woven suits, trousers and shorts | 5% up to ₹2,500 a piece, else 18% | Sale value per piece decides the rate |
| 6204 | Women's woven suits, kurtas and dresses | 5% up to ₹2,500 a piece, else 18% | Sale value per piece decides the rate |
| 6205 | Men's woven shirts | 5% up to ₹2,500 a piece, else 18% | Sale value per piece decides the rate |
| 6302 | Bed linen, table linen and towels | 5% up to ₹2,500 a piece, else 18% | Made-ups follow the same per-piece band |
| 5201 | Raw cotton, not carded or combed | 5% | Bought by spinning mills |
| 5205 | Cotton yarn | 5% | Main input for weavers and knitters |
| 5402 | Synthetic filament yarn | 5% | Moved from 12% on 22 September 2025 |
| 5503 | Synthetic staple fibre | 5% | Moved from 18% on 22 September 2025 |
| 5509 | Yarn of synthetic staple fibre | 5% | Moved from 12% on 22 September 2025 |
| 5204 | Cotton sewing thread | 5% | Bought by garment units |
| 9606 | Buttons | check | Trims can carry a different rate from the garment |
| 9607 | Zip fasteners | check | Trims can carry a different rate from the garment |
| 3204 | Dyes | 18% | Bought by processing and dyeing units |
Sources: CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025, CBIC: GST rates and notifications. Verified .
Which HSN codes does a textile and garment business use most?
Textiles run through chapters 50 to 63 in order of processing. Fibre and yarn come first (cotton in 52, man-made filament in 54, staple fibre in 55), woven fabric sits in the fibre's own chapter (silk 5007, cotton 5208, polyester 5407), knitted fabric in 60, garments in 61 (knitted) and 62 (woven), and made-ups such as bed linen in 63.
Inputs and outputs differ because the stage changes the code. A weaver buys yarn under 5205 and sells fabric under 5208; a garment unit buys that fabric and sells shirts under 6205, where the rate turns on the sale value of each piece. Sarees, dhotis and dress material stay with fabric because they are cut lengths, not tailored garments.
What changed on 22 September 2025 for textiles and garments?
The September 2025 changes moved the garment value band and cut the rate on man-made fibre and yarn. Check every product rate dated after the change.
- The garment band moved to ₹2,500 a piece: garments and made-ups sold up to ₹2,500 a piece are 5% and above it 18%, as notified. Before, the line was ₹1,000 with 12% above it.
- Man-made fibre and yarn came down: synthetic staple fibre from 18% and synthetic yarn from 12%, both to 5%, which ends most of the inverted duty on polyester.
- Fabric stayed at 5%, so sarees, dress material and running fabric did not change.
- Price decides the rate, line by line: a ₹2,400 kurta and a ₹2,600 kurta under the same HSN carry different rates.
HSN on invoices and the GSTR-1 HSN summary in SimpleERP
A garment invoice can carry two rates under one HSN code. SimpleERP keeps the code and rate on each line, and the HSN summary on the invoice print gives each rate its own row.
- HSN on every product and every invoice line, so a bill of sarees prints 5007 and a bill of shirts prints 6205.
- The band is your call on each line: SimpleERP does not switch the rate by price, so pick the rate on the line, or keep one product per price band, when a style sells on both sides of ₹2,500.
- Four or six digits by turnover, as notified: currently four digits on B2B invoices up to ₹5 crore of aggregate turnover and six above it.
- The HSN summary report groups sales by code with taxable value, CGST, SGST and IGST, and exports to CSV for GSTR-1 table 12. It totals by code, so where one code sold at both rates in the month, split that row by rate when you fill table 12. See HSN codes on invoices and GSTR-1 table 12.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
Inputs and input tax credit for textiles and garments
Each stage buys the previous stage's output, so a wrong code on a supplier's bill flows straight into your credit.
- Yarn, fabric and trims arrive under 5205, 5208, 6006, 9606 and 9607, each bill line with the supplier's code and tax.
- Trims and dyes may carry more tax than your output, so watch for credit that builds up faster than you can use it.
- Credit follows GSTR-2B: the purchase register lists every bill with GSTIN, HSN and tax and exports to CSV for your CA to match against GSTR-2B.
- Job work comes in as a service: stitching or dyeing done for you by a job worker carries a SAC code, not an HSN.
FAQ
Questions, answered
How many digits of HSN must a textile business print?
As notified, a business with aggregate turnover up to ₹5 crore in the previous year shows at least four digits on B2B invoices, such as 5208 or 6109. Above ₹5 crore you show six digits on every invoice. Many mills print eight digits anyway because their buyers ask for it.
What is the GST rate on sarees?
Sarees are billed as fabric, under the code of their fibre such as 5007 for silk, 5208 for cotton and 5407 for polyester, and woven fabric has been 5%. Sarees with heavy embroidery or work may fall under another heading, so confirm before billing. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
Is ITC available on yarn for a weaver?
Generally yes. A weaver who buys yarn to make fabric for sale can claim the GST on the yarn, provided the supplier's bill appears in GSTR-2B and the other conditions are met. Since yarn and fabric are now both 5% for most fibres, the credit is usually used up against sales.
Where do I set HSN in SimpleERP?
Open the product, type the HSN code and pick the GST rate. Every invoice line for that product then carries both, and the HSN summary report groups sales by code. For a large catalogue, fill the HSN column in the product CSV import.
Related
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The number that classifies goods for GST and customs, and so decides their GST rate.
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