GST on Cotton, Yarn, Silk, Wool and Nylon

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GST on Cotton, Yarn, Silk, Wool and Nylon

GST rate for all goods has been notified by the GST Council based on HSN codes. HSN code or Harmonised System Nomenclature is an international system for classifying goods in the course of international trade. The GST rate for Cotton, yarn, silk, wool and nylon fall under different chapters of the HSN code and a rate of 0% or 5% or 12% or 18% or 28% could be applicable, based on the HSN classification. In this article, we look at the HSN code for Cotton, yarn, silk, wool and nylon in detail.

GST Rate for Cotton

Cotton is classified under chapter 52 of the HSN code. Accordingly, goods made out of Cottons like Gandhi topi and khadi yarn are exempt from GST. All other cotton and cotton goods as under attract 5% GST.

  • Cotton
  • Cotton waste
  • Sewing thread produced by Cotton
  • Cotton yarn, other than khadi yarn
  • Cotton fabrics [With no refund of ITC accumulation]

GST Rate for Silk

Silk is classified under chapter 50 of the HSN code system. Silkworm laying, cocoon, raw silk and silk waste are exempt from GST. Other silk and silk products as under would attract 5% GST:

  • Silk yarn
  • Woven fabrics of silk or silk waste [With no refund of ITC accumulation]

Click here to read on GST Rate for Hotels and Restaurants

GST Rate for Wool

Wool, fine or coarse animal hair; horsehair yarn and woven fabric are classified under chapter 51 of the HSN code. Fine or coarse animal hair, not carded or combed and waste of wool or fine or coarse animal hair is exempt from GST.

The following wool and animal hair is taxed at 5% GST rate:

  • Garnetted stock of wool or fine or coarse animal hair, shoddy wool
  • Wool and fine or coarse animal hair, carded or combed
  • Yarn of wool or animal hair
  • Fabrics of wool or animal hair [With no refund of ITC accumulation]

GST Rate for Nylon and Artificial Fibres

GST rate for nylon and other artificial fibres are classified under chapter 54 of the HSN code along with man-made filaments and strip the like of man-made textile materials. Under this chapter, all items are taxed at 5% or 18%. Fabrics of man-made textile materials [With no refund of ITC accumulation] is taxed at 5% GST.

All other products as under are taxed at 18% GST:

  • Synthetic filament yarn such as nylon, polyester, acrylic, etc.
  • Artificial filament yarn such as viscose rayon, Cuprammonium, etc.
  • Sewing thread of man-made filaments

Click here to find GST rate for textile machinery. Visit the IndiaFilings GST Portal for more information about GST registration.

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