The thread hsn code is 5204 for cotton sewing thread, 5401 for synthetic filament sewing thread and 5508 for spun polyester thread, and yarn is coded by fibre: cotton yarn 5205 to 5207, polyester and nylon filament yarn 5402, viscose 5403 and spun yarn of man-made fibres 5509 to 5511. GST on thread and yarn is 5% across all of these, and khadi yarn is nil.
The reform brought man-made yarns into line with cotton at 5%, which helped weavers and knitters. This page lists the codes, a yarn trader's bill and the job work rate. Fabric is on the fabric page.
Yarn and thread: codes and GST rates
Item / HSN / GST- Cotton sewing thread5%Retail or not
- Synthetic filament sewing thread5%Polyester thread
- Staple fibre sewing thread5%Spun polyester thread
- Cotton yarn5%Range 5205 to 5207
- Khadi yarnNilNil list
- Polyester and nylon filament yarn5%Synthetic filament yarn
- Viscose filament yarn5%Artificial filament yarn
- Spun yarn of man-made fibres5%Range 5509 to 5511
- Raw cotton and cotton waste5%Range 5201 to 5203
- Polyester staple fibre5%Synthetic staple fibres
- Fibreglass and FRP sheets18%Glass fibre articles
Quick facts
Headings
5204 to 5207 cotton thread and yarn; 5401 to 5406 filament; 5508 to 5511 stapleGST rate
5% (2.5% CGST + 2.5% SGST)Khadi yarn
NilRate before the reform
5% for most; some man-made yarns 12%Digits to print
4 digits up to Rs 5 crore turnover, 6 aboveJob work on yarn
5%
Thread hsn code and yarn hsn code table
| Product | HSN | GST |
|---|---|---|
| Cotton sewing thread | 5204 | 5% |
| Cotton yarn, 85% cotton or more | 5205 | 5% |
| Cotton yarn, blended | 5206 | 5% |
| Cotton yarn, retail packs | 5207 | 5% |
| Khadi yarn | 52 | Nil |
| Synthetic filament sewing thread | 5401 | 5% |
| Polyester and nylon filament yarn | 5402 | 5% |
| Viscose filament yarn | 5403 | 5% |
| Spun polyester sewing thread | 5508 | 5% |
| Spun yarn of polyester, viscose | 5509 or 5510 | 5% |
| Raw cotton | 5201 | 5% |
| Polyester staple fibre | 5503 | 5% |
5402 hsn code gst rate
Heading 5402 covers synthetic filament yarn other than sewing thread, such as polyester POY, FDY and textured yarn and nylon yarn. All goods of 5402 to 5405 are 5% under Schedule I. Polyester filament yarn feeds the weaving and knitting trade in many textile towns.
5205 hsn code: cotton yarn
Cotton yarn containing 85% or more cotton, not for retail sale, is 5205; blended cotton yarn is 5206; and cotton yarn put up for retail sale is 5207. All are 5%, except khadi yarn, which is nil. Spinning mills sell mostly under 5205.
Yarn gst rate in the reform
Before 22 September, some man-made fibre yarns were taxed at 12% while fabric was 5%, which left weavers and knitters with unused credit. The reform brought these yarns to 5%, matching fabric, so most weavers now buy and sell at the same rate. Spinning mills buying fibre at 5% and selling yarn at 5% have a simple position, though their machinery and services at 18% can still leave some credit.
Fibre hsn code
Raw cotton and cotton waste are 5201 to 5203 at 5%. Polyester staple fibre is 5503 and viscose staple fibre 5504, both 5%. Fibreglass sheets and FRP sheets are glass fibre articles under 7019 at 18%, not textile fibre.
Yarn trader's invoice
Yarn trader to a weaver: Cotton yarn 40s count, HSN 5205, 500 kg, Rs 1,50,000. Polyester filament yarn, HSN 5402, 300 kg, Rs 45,000. Taxable value Rs 1,95,000. IGST 5% Rs 9,750. Total Rs 2,04,750.
Job work on yarn and thread
Dyeing, twisting, sizing and texturising yarn for a registered principal are job work on textiles at 5%. A weaver who weaves fabric from a trader's yarn supplies job work at 5%. See job work and sarees.
Yarn and thread codes here summarise Chapters 52 to 55 in general terms. Fibre content and retail packing decide the heading, so check the GST portal and ask a GST practitioner or chartered accountant about blended yarns.
Frequently asked questions
What is the thread hsn code?
Cotton sewing thread is 5204, synthetic filament thread 5401 and spun polyester thread 5508, all at 5%.
What is the yarn hsn code?
Cotton yarn is 5205, polyester filament yarn 5402 and spun yarn of man-made fibres 5509, all at 5%.
What is the 5402 hsn code gst rate?
5%.
Is GST charged on khadi yarn?
No. Khadi yarn is nil rated.
What is the fiber sheet hsn code?
Fibreglass and FRP sheets are 7019, at 18%.