GST on Clothes and Garments HSN Codes

GST on clothes: two slabs and one value test

Readymade clothing sits in two chapters of the customs tariff. Chapter 61 holds garments that are knitted or crocheted: T-shirts, banians, sweaters, hosiery track pants, leggings and socks. Chapter 62 holds garments stitched from woven cloth: formal shirts, trousers, denim jeans, suits, kurtas and salwar sets. Both chapters follow the same rate rule.

• 5% GST when the sale value of a piece is Rs 2,500 or less. For a buyer in your own state the bill splits this into central and state tax of 2.5% each; on an interstate sale it is charged as 5% IGST. These are entries 388 for knitted and 389 for woven clothing in Schedule I, notification 9/2025-Central Tax (Rate).
• 18% GST (9% CGST plus 9% SGST, or 18% IGST) when the sale value of a piece is above Rs 2,500. These are S. No. 197 and S. No. 198 of Schedule II.

Fibre, gender, handloom status or embroidery do not create a third slab. A khadi silk shirt and a plain polyester shirt both face the same Rs 2,500 test. The code moves with the product; the rate moves only with the value of the piece.

All textile, clothing and footwear pages in one table

Use this table to jump to the product you are billing. Garment pages share the value rule above. Fabric, yarn and made-up articles follow their own entries, so open the page before you set the rate in your item master.

Clothes HSN code: knitted or woven decides the chapter

Before you look at the garment type, look at the cloth. Knitted fabric is made of loops and stretches easily when you pull it, like a hosiery vest. Woven fabric has threads crossing at right angles and barely stretches, like a poplin shirt or denim. A knitted polo goes to chapter 61; a woven cotton shirt goes to chapter 62.

Next comes the heading for the type of garment. The common ones are below.

The 6 and 8 digit lines then split by fibre and sometimes by craft. For a men's cotton shirt the path runs chapter 62, heading 6205, sub-heading 6205 20, tariff item 6205 20 90. A handloom version takes 6205 20 10 instead. How many of these digits you must print is explained on the HSN digits on invoices page.

Readymade garments GST rate and the Rs 2,500 line

The slab is set piece by piece, not on the invoice total. A bill for 100 shirts with a large total still takes 5% if each shirt is valued at Rs 2,500 or less. In the same way, a single jacket valued above Rs 2,500 takes 18% even when it is the only item on a small bill.

• Value means the taxable value of the piece, the amount actually charged before GST is added. The printed MRP tag is not the test.
• A discount shown on the invoice at the time of sale reduces that value, so the rate follows the discounted figure.
• Exactly Rs 2,500 is still 5%. The 18% slab starts only when the value is more than Rs 2,500.
• Sets sold as one item, such as a kurta and salwar with dupatta under one code, raise the question of how the piece value is counted. Confirm that point with your practitioner before you fix the rate.

To check the arithmetic on any line, use the GST rate calculator.

Writing garments HSN code and GST rate on an invoice

Because one heading can carry two rates, a clothing invoice often shows the same chapter at 5% on one line and 18% on the next. Keep each rate on its own line so the GSTR-1 HSN summary splits cleanly.

Total tax on this bill is Rs 4,150, and the invoice value including tax is Rs 41,650. For an interstate sale of these goods, the T-shirt line would carry 5% IGST of Rs 1,000 and the blazer line 18% IGST of Rs 3,150.

A practical tip for the item master: when a style is sold near the Rs 2,500 mark in different sizes or after discounts, set up a rule that picks the rate from the per-piece value, or keep two item entries for that style. Many billing errors in this trade come from one fixed rate on an item whose value moves around the limit.

Kids wear HSN code, undergarments and clothing accessories

Kids wear. The tariff has separate headings for babies' garments: 6111 when knitted and 6209 when woven. These are meant for very young children. Clothes for older boys and girls go under the regular men's or boys' and women's or girls' headings, such as 6203 for boys' trousers or 6204 for girls' dresses. The Rs 2,500 rule is the same for all of them.

Undergarments. Knitted briefs and trunks for men fall in 6107, and knitted panties, slips and nightwear for women in 6108. Brassieres sit in 6212. Most innerwear lines are billed at 5%, but the rate still depends on the value of each piece.

Accessories. Chapters 61 and 62 also cover clothing accessories, and the same value rule applies to them. Examples are knitted gloves (6116), handkerchiefs (6213), shawls, scarves and stoles (6214) and ties (6215). Footwear is a different chapter with its own per pair limit; see the footwear code page.

Clothes GST rate before and after the reform

The rate reform in force from 22 September shifted the value line for clothing from Rs 1,000 to Rs 2,500 and raised the upper rate from 12% to 18%. Any rate card or item master still set at 12% for garments needs updating.

So mid-range clothing now carries less tax, while premium pieces carry more. The reform also lowered rates on several man-made fibre and yarn inputs, which matters to manufacturers; the yarn and thread page has the details. For a wider view of what moved across all goods, see GST rate changes.

Credit, e-way bills and reverse charge for apparel traders

• Input tax credit. A registered garment trader can take credit of the GST paid on purchases used for taxable sales. A maker who buys trims, packing or services at 18% and sells most garments at 5% can build up unused credit. Whether that comes back as a refund depends on the inverted duty rules, so get professional advice before filing a claim.
• Composition dealers. A small retailer under the composition scheme issues a bill of supply without GST, pays tax on turnover at the scheme rate and cannot claim input tax credit.
• E-way bill. Once a consignment's value goes beyond Rs 50,000, the goods must travel with an e-way bill, and the code entered there has to be the same one printed on the invoice. When a principal sends goods to a job worker in another state, the e-way bill is needed whatever the value. Stitching and dyeing done for others are covered on the job work page.
• Reverse charge. A normal sale of garments is not under reverse charge. The supplier charges and pays the tax.

Common slips on garment bills and the fix