GST Rate for Garments, Footwear, and Textile Products

GST rate for all goods and services has been notified by the GST Council. GST rates have been fixed at 0%, 5%, 12%, 18% and 28% in India for both goods and services.  The GST rate for textile products including apparel, clothing, cotton products, etc., were announced in the GST Council meeting held on 3rd June 2017. In this article, we look at the GST rate for apparel, clothing and textile products in detail.

GST Rate for Garment, Apparel, and Clothing

Knitted apparel and clothing fall under chapter 61 of the HSN code. Apparel and clothing NOT knitted fall under chapter 62 of the HSN code.

Description Rate (%)
Articles of apparel and clothing accessories, knitted or crocheted, of sale value not exceeding Rs. 1000 per piece 5
Articles of apparel and clothing accessories, knitted or crocheted, of sale value exceeding Rs. 1000 per piece 12
Handmade/hand embroidered shawls of sale value not exceeding Rs. 1000 per piece 5
Handmade/hand embroidered shawls of sale value exceeding Rs. 1000 per piece 5

 

GST Rate for Footwear

Refer below table for different rates applicable on different types of Footwear.

Description Rate (%)
Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes 18
Other footwear with outer soles and uppers of rubber or plastics 18
Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather 18
Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials 18
Other footwear 18
Parts of footwear (including uppers whether or not attached to soles other than outer soles); removable in-soles, heel cushions and similar articles; gaiters, leggings and similar articles, and parts thereof 18
Footwear having a retail sale price not exceeding (Rs.500 1000 substituted on 27/07/2018) per pair, provided that such retail sale price is indelibly marked or embossed on the footwear itself. 5

 

GST Rate for Textile Products

Various textile products like curtains, bedsheets, used clothes, etc., have been listed under chapter 63 of the HSN code under other made up textile articles, sets, worn clothing and worn textile articles; rags. There is some good news from the finance ministry for the keen watchers of the GST barometer in the textile industry. At the onset, the finance ministry decided that there will be no tax on silk and jute fibers. Also, apparels costing below Rs. 1000 will be taxed at 5 percent Blankets and traveling rugs.

GST Registration – Eligibility, Process and Expert Help

Rates for Textile Products:

Tax-Free Textile Goods

a) Raw silk and silk waste

b) Wool, not carded or combed

c) Gandhi Topi, National Flag

d) Khadi Yarn

e) Coconut or Coir fiber

f) Jute fibers raw or processed but not spun

5% GST (Fibers and Yarns)

a) Silk yarn

b) Yarn of wool or of animal hair

c) Cotton yarn, other than khadi yarn

d) Cotton sewing thread

e) Vegetable fibers and yarns such as Flax, Hemp, Paper yarn

f) Embroidery or Zari articles

5% GST with no refund of ITC accumulation

a) Woven fabrics of Silk or Silk Waste

b) Fabrics Wool or of animal hair

c) Cotton fabrics

d) Fabrics of other vegetable textile fibers

e) Fabrics of manmade textile filaments

f) Fabrics of manmade staple fibers

g) Knitted or Crocheted fabrics

What is Input Credit under GST ? And how to claim it?

Mix Bag (5% GST if Sale value below Rs. 1000, 12% GST sale value above Rs. 1000)

a) Articles of apparel and clothing accessories, knitted or crocheted

b) Articles of apparel and clothing accessories, not knitted or crocheted

c) Blankets and traveling rugs

d) Curtains (including drapes) and interior blinds; curtain or bed valances

e) Other furnishing articles, such as Bedspreads Counterpanes, Napkins, Pillowcase, Table cloth

f) Worn clothing and other worn articles

g) Used or new rags, scrap twine, cordage, rope and cables and worn out articles of twine, cordage, rope or cables, of textile materials.

12% GST

Wadding and felt of Textile materials whether or not impregnated, coated, covered or laminated

  1. Nonwovens
  2. Rubber threads and covered yarns
  3. Metalized yarns, imitation Zari yarns
  4. All Carpets and Floor Coverings including mats
  5. Woven Pile fabrics and Terry Towels
  6. Narrow Woven fabrics
  7. Woven fabric of metal thread and metalized yarn is taxable
  8. Quilted textile products
  9. Tyre Cord fabric of high tenacity yarn
  10. Textile products and articles for technical uses (technical textiles)

18% GST (Fibres and Yarns)

a) Synthetic filament yarn such as Nylon, Polyester, Acrylic etc

b) Artificial filament yarn like Viscose rayon, Cuprammonium Rayon etc

c) Sewing thread of manmade filaments

d) Synthetic or artificial staple fibers

e) Synthetic or artificial filament tow

f) Yarn of manmade staple fibers

g) Sewing thread of manmade staple fibers

h) All Textile Machinery

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