Percentage of GST imposed for manmade textile materials, filaments, strips

Posted on 25 April 2023 Category : GST rates

GST on textile materials made manually, filaments, strips etc.

Manmade textile materials, filaments and strips falls under HSN code chapter 54 of GST commodity tariff schedule. The details about GST rate changes for sale of Manmade textile materials, filaments and strips are being updated here. The notification changes on exemptions for GST for sale of Manmade textile materials, filaments and strips and other circulars related to GST for manmade textile materials, filaments, strips are updated in this website.

Update on 4^thJUNE, 2017: GST rates on goods

5% GST RATE:

1. Fabrics of manmade textile materials [GST HSN chapter code 5407, GST HSN chapter code 5408] [With no refund of ITC accumulation]

Reduced GST Rates on 9th September 2017

Present GST rate Reduced GST rate

54 Khadi fabric, sold through Khadi and 5% Nil

Village Industrries Commission’s outlets

The 45th GST council meeting was held on 17th September 2021 and the following decisions had been taken regarding GST rates.

(2) GST rate changes to correct the inverted tax structure:

GST increased to 12% from 5% for textiles with HSN codes 51, 52, 53, 54, 55, 56, 58, 60, 63 and 64 such as woven as well as knitted fabrics, knitting, saree falls, embroidery works, curtains bed linen and home furnishings. It also includes dyeing services.

Changes were notified vide the Central Tax (Rate) notification no. 14/2021 and 15/2021 dated 18th November 2021, recommended at the 45th GST Council meeting.

18% GST RATE:

1. Synthetic filament yarn such as nylon, polyester, acrylic, etc. [GST HSN chapter code 5402, GST HSN chapter code 5404, GST HSN chapter code 5406]

2. Artificial filament yarn such as viscose rayon, Cuprammonium, etc. [GST HSN chapter code 5403, GST HSN chapter code 5405, GST HSN chapter code 5406]

3. Sewing thread of manmade filaments [GST HSN chapter code 5401]

Reduced GST Rates on 06th October, 2017

earlier rate new rate

5401 Sewing thread of manmade filaments, 18% 12%

whether or not put up for retail sale

5402, 5404, All synthetic filament yarn, such as 18% 12%

5406 nylon, polyester, acrylic, etc.

5403, 5405, All artificial filament yarn, such as 18% 12%

5406 viscose rayon, Cuprammonium,

In India, GST is payable for Manmade textile materials, filaments and strips falls. However, some of the categories of business under HSN code 54 are expected to be exempted from paying GST. The list of exempted commodities and services under GST is expected to be released soon.

The GST The special package on garment sector made-ups and home textile is expected to be extended under GST regime also.

Goods and Service Tax (GST) rate tariff in India is designed in 6 categories of goods and services. Four main GST rate slabs framed with Essential goods and services, Standard goods and services and luxury goods and services with 5%, 12%, 18% and 28% respectively. Commonly used Goods and Services at 5%, Standard Goods and Services fall under 1st slab at 12%, Standard Goods and Services fall under 2nd Slab at 18% and Special category of Goods and Services including luxury - 28%. The most essential goods and services attract nil rate of GST under Exempted Categories. Luxury goods and services and certain specific goods and services attract additional cess than 28% GST.

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Percentage of GST imposed for manmade textile materials, filaments, strips

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