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Published on:

February 16, 2025

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Textile Products GST Rate and HSN Code- 5911

Three basic needs are essential to every one of us: clothing, food, and shelter. Although housing offers safety and food sustains us, clothing serves as more than just a means of self-coverage. Our economics, identity, and culture are all reflected in it. With millions of businesses/projects and workers, the fabric part is one of India's largest areas. Our everyday lives are linked to this industry, which includes everything from large-scale fabric mills to traditional handlooms.

If you run a fabric business—whether as a manufacturer, trader, or shop owner—knowing about taxes is just as important as picking the right fabric. Knowing how GST applies to different fabrics can help businesses with pricing and making smarter decisions.

GST and Its Effect on the Textile Industry-

1. Easier Tax System – Earlier, textiles had multiple taxes like VAT and excise duty. Now, GST has replaced them with one simple tax.

2. Cost Savings with ITC – Textile businesses can get tax benefits on raw materials, helping them save money and reduce costs.

3. Pricing Changes – Some textile products now have higher taxes, but GST has made pricing more transparent and predictable.

4. Impact on Small Businesses – Initially, small textile traders faced compliance challenges, but GST registration has allowed them to enter the formal economy.

5. Boost to Exports – The GST refund mechanism ensures exporters get tax benefits, making textiles more competitive in the global market.

Here are a few HSN codes for textile products:

You Can Also Read: 6307 HSN Code for Made-Textile Articles

GST on Common Textile Products-

1. Cotton Fabrics: Cotton is everywhere—your favorite T-shirt, cozy bed sheets, and even household fabrics. The tax on cotton fabrics isn’t the same for all; it depends on how they’re used, whether for clothing or home essentials, with rates varying accordingly.

2. Silk Textures: Silk may be a high-end texture that's habitually utilized for interesting pieces of clothing like ties and sarees. Silk is subject to GST, with rates shifting based on its expected use.

3. Woolen Textures: These materials keep us warm in the winter, whether it's through warm covers or cozy sweaters. The GST demands charges on them based on the kind of fleece utilized.

4. Engineered Textures: A critical parcel of day-by-day clothing made of polyester and other manufactured materials. These materials are subject to GST as well, with distinctive assessment rates depending on their planning utilization

5. Textile Yarns: Whether made of cotton, silk, or engineered filaments, yarns are the basic components of all textures. They are also taxed under GST, with rates depending on the type of yarn.

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You Can Also Read: GST Rate & HSN Code 6113 for Garments

Practical Example of GST Calculation for 5911 Textile Products

Cotton Fabric Example

1. GST Rate: Cotton fabric generally falls under a 5% GST slab.

2. Price Before GST: Suppose the cost of cotton fabric before GST is Rs.1,000 per meter.

3. 5% of Rs.1,000 = Rs.50

4. So, the GST amount added to the cost is Rs.50.

5. Price After GST: Rs.1,000 (cost) + Rs.50 (GST) = Rs.1,050 per meter.

Silk Fabric Example

1. GST Rate: Silk fabric usually falls under a 5% GST rate, though premium or blended varieties may be taxed differently based on classification.

2. Price Before GST: Suppose the cost of silk fabric before GST is Rs.2,000 per meter.

3. GST Calculation: 5% of Rs.2,000 = Rs.100

So, the GST amount added to the cost is Rs.100.

4. Price After GST: Rs.2,000 (cost) + Rs.100 (GST) = Rs.2,100 per meter

Summary

Cotton Fabric

Cost before GST: Rs.1,000

GST (5%): Rs.50

Price after GST: Rs.1,050

Silk Fabric

Cost before GST: Rs.2,000

GST (5%): Rs.100

Price after GST: Rs.2,100

As shown, the GST rate adds a small cost to the final price, directly impacting both the buyer and seller.

Conclusion

Clothing is a part of our daily lives, and its demand will only continue to rise. As people explore various fabrics, the textile industry will keep evolving, playing a crucial role in India's economy. That's why understanding GST rates and HSN codes for fabrics--whether it's soft cotton or rich and beautiful silk--is extremely important. It not only helps businesses stay informed but also makes buying and selling fabric products smoother for everyone.

FAQs

1. Is GST charged on all textile products?

Yes, GST applies to most textile products, with rates depending on the fabric type.

2. What HSN code covers textile products used for technical purposes?

HSN code 5911 covers textile products and articles used for technical purposes.

3. Can small textile businesses benefit from GST?

Yes, GST helps small businesses by offering tax benefits and allowing them to enter the formal economy.

4. Do textile exports benefit from GST?

Yes, GST offers a refund mechanism that benefits textile exporters, making Indian textiles more competitive.

5.Do textile businesses have to register for GST?

Yes, if a textile business's yearly turnover exceeds the GST limit, registration is required.

6. How can I check the GST rate for specific textile products?

You can check the GST rate for specific textile products by referring to the HSN codes on official GST portals or documents.

7. Is there GST on used textile products?

Yes, GST applies to used textile products, but the rate may vary depending on the condition and type of product.

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