GST Rate for Clothes - Updated 2026 Slab & HSN Details

Clothes and GST: Understanding the Taxation System in India

In India, the taxation system for clothes has undergone significant changes with the introduction of the Goods and Services Tax (GST). The GST rate for clothes is 5%, with an HSN code of 6101-6117 for woven garments and 6201-6217 for knitted garments. The effective date of this rate is July 1, 2017. To calculate the GST amount, you can use our calculator widget below.

Calculate GST

function calculateGST() { var basePrice = document.getElementById("basePrice").value; var gstRate = 0.05; var gstAmount = basePrice * gstRate; document.getElementById("gstAmount").innerHTML = "The total GST amount is: ₹" + gstAmount.toFixed(2); }

Detailed Tax Breakdown: Composition vs Regular Scheme

The GST tax breakdown for clothes in India depends on the type of scheme chosen by the manufacturer or supplier. The two main schemes are the composition scheme and the regular scheme. The composition scheme is a simplified tax scheme for small businesses with an annual turnover of up to ₹1.5 crore. The tax rate under this scheme is 1% for manufacturers and 2.5% for suppliers.

Scheme	Tax Rate	Applicability
Composition Scheme	1% (manufacturers), 2.5% (suppliers)	Annual turnover up to ₹1.5 crore
Regular Scheme	5%	Annual turnover above ₹1.5 crore

Comparison with Pre-GST Tax Regime

Prior to the introduction of GST, the taxation system for clothes in India was complex and involved multiple taxes such as excise duty, value-added tax (VAT), and central sales tax (CST). The tax rates varied across different states, and the overall tax burden was higher than the current GST rate of 5%.

Pre-GST Tax Rates

Tax Type	Tax Rate
Excise Duty	12.36%
VAT	5-14.5%
CST	2%

Frequently Asked Questions

Input Tax Credit

Input tax credit (ITC) is the credit available to businesses for the tax paid on inputs used in the production of goods or services. In the case of clothes, ITC can be claimed on the tax paid on raw materials such as fabric, threads, and buttons.

• What is the eligibility criteria for claiming ITC on clothes?
• How to calculate ITC on clothes?
• What are the documents required to claim ITC on clothes?

For more information on ITC, please refer to the GST Act and Rules.

Compliance Tips

To avoid common billing mistakes associated with clothes, follow these compliance tips:

1. Ensure accurate HSN/SAC code declaration
2. Verify GSTIN and PAN details of suppliers
3. Maintain proper records of input tax credit
4. File GST returns on time to avoid penalties

Conclusion

In conclusion, the taxation system for clothes in India has undergone significant changes with the introduction of GST. The GST rate of 5% is applicable to most types of clothes, with an HSN code of 6101-6117 for woven garments and 6201-6217 for knitted garments. Understanding the tax breakdown, comparison with pre-GST tax regime, and compliance tips can help businesses navigate the GST system and avoid common billing mistakes.