GST Rate and HSN code for Silk and Silk products

Silk falls under HSN code chapter 50 of GST product tariff schedule. In India, GST is payable on silk. However, some of categories come under business HSN codes 50 are which expects to be exempt from paying GST.  And also see HSN code for silk sarees. Additionally, check GST on handloom silk sarees. Hence, for more details see HSN code for cotton sarees.

Rate of GST payable for Silk and Silk products

Raw silk, Silk cocoon and Silk waste are freed from tax. Other silk items are taxed at 5%, with full Input tax credit. However refund of excess ITC is not available. Silk is classified under chapter 50 of HSN code system

Silk waste is exempted from paying GST.

Sarees and personal care products are likely to get more expensive under Goods & Services Tax (GST) framework. And same rates will also hold true for other readymade garments. Such as, salwar kurtas, dresses, skirts, tops and jeans.

What is the GST rate on handloom silk and cotton sarees?

According to Central excise tariff act (CETA) sarees do not fall under readymade garments. Even it is embroidered or falls are stitched etc. Silk sarees and cotton sarees fall under 5% GST slab. And also falls under HSN code chapter 50 of GST commodity tariff schedule. Some of categories businesses under HSN code 50 which expects to be exempts from GST. You can check for further updates. Hence, GST rate of handloom silk and cotton sarees is 5%.

Synthetic and other manmade fibers will attract higher tax of 18 per cent. But other natural fibres except silk and jute will tax at 5 per cent. This will also impact cost of sarees. And prices of sarees will go up. Meanwhile, items used by many married women. Such as kumkum, sindoor, bindisand bangles have been exempt from GST.

However, normal kajal will also be exempt from GST. But kajal sticks will attract 18 per cent tax.

From the rates announced so for we can understood that all silk fabrics are taxable including silk sarees manufactured through handloom, which are at present exempted from both VAT and Central Excise.  Whatever rates announced is general, however separate Notification may issue in future to make Silk Sarees made through handloom to exempt. Hence, find below list of GST rate for textile industry.

Exempted from tax

  • Silkworm laying, cocoon- GST HSN code 5001
  • Raw silk falls under HSN code 5002
  • Silk waste comes under HSN code 5003

 5% GST rate

  • Silk yarn HSN code- 5004, 5005, 5006
  • Woven fabrics of silk or silk waste HSN code 5007 With no refund of ITC accumulation

12% GST rate

  • High end readymade cloths mainly those which are above rs 1000

Finally, you can check GST on silk fabric. And also see GST HSN code on cotton. Therefore check HSN code for silk sarees. In addition, you can view GST on handloom sarees. Hence, for more details check GST on cotton sarees.

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