{"id":12186,"date":"2025-09-25T18:02:04","date_gmt":"2025-09-25T12:32:04","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=12186"},"modified":"2026-01-20T17:05:57","modified_gmt":"2026-01-20T11:35:57","slug":"gst-on-clothes","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/gst-on-clothes\/","title":{"rendered":"GST On Clothes, Readymade Garments, Textile &#038; Apparel Products in India in 2026"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ef48de65460\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ef48de65460\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/gst-on-clothes\/#Latest-Update-on-GST-on-Clothes\" >Latest Update on GST on Clothes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/gst-on-clothes\/#GST-on-Clothes-Garments-and-Textiles-in-India\" >GST on Clothes, Garments, and Textiles in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/gst-on-clothes\/#GST-Rate-on-Clothes-and-Apparels\" >GST Rate on Clothes and Apparels<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/gst-on-clothes\/#GST-Rate-on-Textile-Materials\" >GST Rate on Textile Materials<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/gst-on-clothes\/#Importance-of-the-Apparel-Industry-to-India\" >Importance of the Apparel Industry to India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/gst-on-clothes\/#Recent-Updates-Of-GST-Regulations-For-The-Clothing-Industry-In-2026\" >Recent Updates Of GST Regulations For The Clothing Industry In 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/gst-on-clothes\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/gst-on-clothes\/#Frequently-Asked-Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Latest-Update-on-GST-on-Clothes\"><\/span>Latest Update on GST on Clothes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The GST Council, during its meeting held on <strong>Saturday, December 21, 2024<\/strong>, proposed significant changes to the taxation structure for apparel under the <strong>Constitution of Group of Ministers (GoM)<\/strong>. These changes aim to rationalize tax rates across different price ranges of garments.<\/p>\n<h4>Proposed GST Rates on Ready-Made Garments:<\/h4>\n<ul>\n<li><strong>Garments costing up to \u20b91,500:<\/strong> 5% GST<\/li>\n<li><strong>Garments costing between \u20b91,500 &#8211; \u20b910,000:<\/strong> 12% GST<\/li>\n<li><strong>Garments costing above \u20b910,000:<\/strong> 18% GST<\/li>\n<\/ul>\n<h4>Proposed GST Hike on Shoes:<\/h4>\n<ul>\n<li>For <strong>shoes priced above \u20b915,000 per pair<\/strong>, the GST rate is proposed to be increased from <strong>18% to 28%<\/strong>.<\/li>\n<\/ul>\n<p>These proposed changes, if implemented, could have a impact on the pricing and consumption patterns of ready-made garments and high-value footwear.<\/p>\n<p><em><strong>Related Read:<\/strong> <a href=\"https:\/\/razorpay.com\/learn\/gst-on-shoes\/\">GST on Shoes: Rates, HSN Code, Registration &amp; Input Tax Credit<\/a><\/em><\/p>\n<h2 data-start=\"250\" data-end=\"308\"><span class=\"ez-toc-section\" id=\"GST-on-Clothes-Garments-and-Textiles-in-India\"><\/span><strong data-start=\"250\" data-end=\"308\">GST on Clothes, Garments, and Textiles in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"310\" data-end=\"410\">In India, GST rates on textiles, clothes, and garments vary based on the type and price of the item:<\/p>\n<ul data-start=\"412\" data-end=\"681\">\n<li data-start=\"412\" data-end=\"453\">\n<p data-start=\"414\" data-end=\"453\"><strong data-start=\"414\" data-end=\"445\">Clothes Priced Below \u20b91,000<\/strong>: 5% GST<\/p>\n<\/li>\n<li data-start=\"454\" data-end=\"498\">\n<p data-start=\"456\" data-end=\"498\"><strong data-start=\"456\" data-end=\"489\">Clothes Priced \u20b91,000 or More<\/strong>: 12% GST<\/p>\n<\/li>\n<li data-start=\"499\" data-end=\"533\">\n<p data-start=\"501\" data-end=\"533\"><strong data-start=\"501\" data-end=\"524\">Ready-Made Garments<\/strong>: 12% GST<\/p>\n<\/li>\n<li data-start=\"534\" data-end=\"585\">\n<p data-start=\"536\" data-end=\"585\"><strong data-start=\"536\" data-end=\"576\">Synthetic or Man-Made Fibers\/Fabrics<\/strong>: 18% GST<\/p>\n<\/li>\n<li data-start=\"586\" data-end=\"633\">\n<p data-start=\"588\" data-end=\"633\"><strong data-start=\"588\" data-end=\"624\">Textile Products (Standard Rate)<\/strong>: 12% GST<\/p>\n<\/li>\n<li data-start=\"634\" data-end=\"681\">\n<p data-start=\"636\" data-end=\"681\"><strong data-start=\"636\" data-end=\"673\">Apparel and Footwear Below \u20b91,000<\/strong>: 5% GST<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"683\" data-end=\"996\">For <strong data-start=\"687\" data-end=\"701\">raw cotton<\/strong>, GST is payable on a reverse charge basis at <strong data-start=\"747\" data-end=\"753\">5%<\/strong>. This means the buyer pays the GST directly, not the supplier. However, <strong data-start=\"826\" data-end=\"838\">raw jute<\/strong> and <strong data-start=\"843\" data-end=\"855\">raw silk<\/strong> are exempt from GST, meaning no GST applies to these materials, and businesses handling them do not need to pay taxes or register under GST.<\/p>\n<p data-start=\"998\" data-end=\"1144\">This system helps in simplifying the taxation on textiles while making certain products like raw materials and affordable apparel more accessible.<\/p>\n<p><em><strong>Related Read: <a href=\"https:\/\/razorpay.com\/learn\/gst-rates-goods-and-service-tax-rates-slabs\/\">GST Rates in 2024: Check Full List of Goods and Service Tax Rates, Slabs &amp; Revisions<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"GST-Rate-on-Clothes-and-Apparels\"><\/span>GST Rate on Clothes and Apparels<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In accordance with <a href=\"https:\/\/cbic-gst.gov.in\/gst-goods-services-rates.html#:~:text=222-,61%20or%206501%0Aor%206505,-Article%C2%A0%20of%C2%A0%20apparel\" target=\"_blank\" rel=\"noopener\">CBIC GST Rates<\/a>, we have listed the GST rates for clothing.<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>Sr.No<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>ITEMS<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>HSN Code<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>GST Rate<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>Conditions<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Apparel\u00a0 and\u00a0 clothing\u00a0 accessories\u00a0 or\u00a0 cap\/topi, knitted or crocheted.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">61 or 6501 or 6505<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sale value not exceeding Rs 1000 per piece<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">2<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Apparel and clothing accessories, not knitted or crocheted<\/span><\/td>\n<td><span style=\"font-weight: 400;\">62<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sale value not exceeding Rs. 1000 per piece<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">3<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Other\u00a0 made\u00a0 up\u00a0 textile<\/span><\/td>\n<td><span style=\"font-weight: 400;\">63\u00a0 (other than 6305 32 00, 6309)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sale\u00a0 value\u00a0 not exceeding Rs. 1000 per piece<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">4<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Handmade\/hand \u00a0 embroidered \u00a0 shawls<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6117, 6214<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sale<\/span><\/p>\n<p><span style=\"font-weight: 400;\">value not exceeding Rs. 1000 per piece<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">5<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Worn clothing and other worn articles<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6309 or 6310<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">&#8211;<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">6<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Apparel and clothing accessories, knitted or crocheted.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">61<\/span><\/td>\n<td><span style=\"font-weight: 400;\">12%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sale value exceeding <\/span><span style=\"font-weight: 400;\">Rs. 1000 per piece<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">7<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Apparel and clothing accessories,<\/span><\/p>\n<p><span style=\"font-weight: 400;\">not \u00a0 knitted \u00a0 or \u00a0 crocheted.<\/span><\/td>\n<td><span style=\"font-weight: 400;\">62<\/span><\/td>\n<td><span style=\"font-weight: 400;\">12%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sale \u00a0 value exceeding Rs. 1000 per piece<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">8<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Other\u00a0 made\u00a0 up\u00a0 textile\u00a0 articles (other than Worn clothing)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">63<\/span><\/td>\n<td><span style=\"font-weight: 400;\">12%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Sale value\u00a0 exceeding\u00a0 Rs.\u00a0 1000\u00a0 per\u00a0 piece<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"GST-Rate-on-Textile-Materials\"><\/span><b>GST Rate on Textile Materials<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>All sorts of clothes and apparel with a market cost higher than Rs. 1000 are subject to a 12% GST Rate. The standard GST rate for textile products is 12%, while 5% GST is applied if the cost of apparel and footwear is less than \u20b91,000.<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>Sr.No<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>ITEMS<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>HSN Code<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>GST Rate<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Silk yarn<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5004 to 5006<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">2<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Woven fabrics of silk or of silk waste<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5007<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">3<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Garneted\u00a0 stock of wool, fine\u00a0 or\u00a0 coarse\u00a0 animal\u00a0 hair, shoddy wool<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5104<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">4<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Wool and fine or coarse animal hair, carded or combed<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5105<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">5<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Yarn of wool or animal hair<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5106 to 5110<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">6<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Woven fabrics of wool or animal hair<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5111 to 5113<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">7<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cotton and Cotton waste<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5201 to 5203<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">8<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cotton sewing thread (whether or not put up for retail sale)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5204<\/span><\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">9<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cotton yarn [other than khadi yarn]<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5205 to 5207<\/span><\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">10<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Woven fabrics of cotton<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5208 to 5212<\/span><\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">11<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Flax, raw or processed but not spun; flax tow and waste (including yarn waste and garneted stock)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5301<\/span><\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">12<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Textile bast fibres (Other than jute fibres, raw or processed but not spun)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tow and waste of these fibres ((including yarn waste and garneted stock))<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5303<\/span><\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">13<\/span><\/td>\n<td><span style=\"font-weight: 400;\">All goods including yarn of flax,\u00a0 jute, other textile\u00a0 bast\u00a0 fibres,\u00a0 other\u00a0 vegetable textile fibres and paper yarn. (other than coconut coir fibre)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5305 to 5308<\/span><\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">14<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Woven fabrics of vegetable textile fibres, paper yarn<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5309 to 5311<\/span><\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">15<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Woven fabrics of manmade textile materials<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5407, 5408<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">16<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Woven fabrics of manmade staple fibres<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5512 to 5516<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">17<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Real zari thread\u00a0 (gold)\u00a0 and\u00a0 silver\u00a0 thread<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5605, 5600, 5610<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">18<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Jute twine, coir cordage or ropes<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5607<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">19<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Knotted netting of twine, cordage or rope<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5608<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">20<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Products of coir<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5609<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">21<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Coir \u00a0 mats, \u00a0 matting, \u00a0 floor \u00a0 covering \u00a0 and \u00a0 handloom durries<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5702, <\/span><span style=\"font-weight: 400;\">5703, <\/span><span style=\"font-weight: 400;\">5705<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">22<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Narrow fabrics consisting of warp without weft assembled <\/span><span style=\"font-weight: 400;\">by means of an adhesive (bolducs)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5806<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">23<\/span><\/td>\n<td><span style=\"font-weight: 400;\">All goods of Knitted or crocheted fabrics\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">60<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Tailoring services and renting of clothes are subject to a GST rate of 5% under HSN code 9988.<\/p>\n<p>Additionally, the <a href=\"https:\/\/razorpay.com\/learn\/gst-composition-scheme-benefits\/\">composition scheme<\/a> is available for businesses supplying clothes, provided their annual turnover does not exceed Rs. 1.5 crore (or Rs. 75 lakhs in north-eastern states). For businesses involved in cloth renting or stitching services, the turnover limit for the composition scheme is Rs. 50 lakhs.<\/p>\n<h2 data-start=\"128\" data-end=\"175\"><span class=\"ez-toc-section\" id=\"Importance-of-the-Apparel-Industry-to-India\"><\/span>Importance of the Apparel Industry to India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"177\" data-end=\"470\">The apparel industry is a vital part of India\u2019s economy, playing a key role in employment generation, export earnings, and overall economic growth. As one of the top producers of textiles and garments in the world, India\u2019s legacy in textile production is deeply woven into its cultural fabric.<\/p>\n<p data-start=\"472\" data-end=\"758\">This industry is the second-largest employer in the country, providing livelihoods to millions \u2014 especially women and rural communities. From cotton farming to garment stitching, the sector supports a wide spectrum of jobs and entrepreneurial opportunities across urban and rural India.<\/p>\n<p data-start=\"760\" data-end=\"1004\">On the global front, Indian garments are known for their quality and craftsmanship, making them highly sought-after in international markets. These exports contribute significantly to foreign exchange earnings and help reduce the trade deficit.<\/p>\n<p data-start=\"1006\" data-end=\"1233\">Moreover, many textile hubs are located in rural and semi-urban areas, promoting decentralised development. This structure helps improve regional living standards and ensures inclusive growth by reducing geographic disparities.<\/p>\n<p data-start=\"1235\" data-end=\"1500\">The implementation of GST has further streamlined the apparel sector by simplifying taxes, reducing compliance burdens, and making it more competitive. This reform has improved the ease of doing business, boosting the industry&#8217;s sustainability and long-term growth.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Recent-Updates-Of-GST-Regulations-For-The-Clothing-Industry-In-2026\"><\/span>Recent Updates Of GST Regulations For The Clothing Industry In 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">During the interim <a href=\"https:\/\/razorpay.com\/learn\/budget-2024-highlights\/\">budget of 2024<\/a>, the Apparel Export Promotion Council (AEPC) proposed several changes to the GST structure for the textile industry. The council requested tax incentives, including uniform GST rates and increased interest subsidies, to support domestic manufacturing and boost India&#8217;s exports.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">AEPC called for tax concessions for apparel manufacturers who adhere to international quality standards and Environmental, Social, and Corporate Governance (ESG) compliance. They also sought budgetary support for branding and marketing Indian products.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The council noted that interest equalisation rates under the interest equalisation scheme were reduced from <\/span><a href=\"https:\/\/www.indiatvnews.com\/business\/news\/apparel-sector-seeks-gst-uniformity-enhanced-interest-subsidies-to-boost-domestic-manufacturing-2024-01-24-913521\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">3% to 2% for non-MSMEs<\/span><\/a><span style=\"font-weight: 400;\">. AEPC requested that the government increase these rates to 5% for all apparel exporters.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, AEPC suggested that trimmings and embellishments be included under the Import of Goods at Concessional Rates (IGCR) duty rules. Exporters are often required to use pre-approved trimmings and embellishments from overseas suppliers nominated by garment buyers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, no changes have been made yet in the GST structure for clothing in 2024.\u00a0<\/span><\/p>\n<p><em><strong>Recent GST Update: <a href=\"https:\/\/razorpay.com\/learn\/53rd-gst-council-meeting\/\">All About 53rd GST Council Meeting<\/a><\/strong><\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It&#8217;s crucial for clothing businesses to keep up with GST rules to stay compliant and competitive. There have been no changes in the GST structure in clothing since 2022 however businesses must stay updated as these GST changes affect finances and operations. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">By seeking advice when needed and following compliance rules, businesses can avoid penalties and manage taxes effectively. This proactive approach helps ensure steady growth and adaptability in an ever-changing regulatory landscape, setting them up for success in the clothing industry.<\/span><\/p>\n<p><em><strong>Also Read:\u00a0<\/strong><\/em><\/p>\n<ul>\n<li><em><strong><a href=\"https:\/\/razorpay.com\/learn\/gst-on-insurance-premium\/\">GST Rate on Insurance Premium<\/a><\/strong><\/em><\/li>\n<li><a href=\"https:\/\/razorpay.com\/learn\/gst-on-rent\/\"><em><strong>GST Rate on Rent<\/strong><\/em><\/a><\/li>\n<li><em><strong><a href=\"https:\/\/razorpay.com\/learn\/gst-on-air-conditioners-ac\/\">GST Rate on AC<\/a><\/strong><\/em><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions\"><\/span><b>Frequently Asked Questions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. What Is The GST Percentage On Clothes In India?<\/b><\/h3>\n<p>Ready-made garments priced up to \u20b91000 are taxed at 5%, while those priced above \u20b91000 incur a GST of 12%.<\/p>\n<h3>2. Are Clothes Subject To GST?<\/h3>\n<p>The sale of clothes, whether stitched or unstitched, is taxable under GST as it falls within the scope of supply.<\/p>\n<h3>3. What Are The GST Rates On Garments?<\/h3>\n<p>The rate of GST on stitched and readymade clothes is\u00a0<b>5%<\/b>.<\/p>\n<h3>4. What Is The GST Rate For Tailoring Services?<\/h3>\n<p>Tailoring services are subject to a GST rate of 5% which has been reduced from 18% under HSN code 9988.<\/p>\n<h3>5. Which Clothing Items Are Exempt From GST?<\/h3>\n<p>Raw jute and raw silk are exempt from GST, meaning dealers or mills handling these materials do not need to register under GST or pay taxes. Additionally, certain wool products also fall under this exemption from GST.<\/p>\n<h3>6. How Does GST Impact The Pricing Of Clothes?<\/h3>\n<p>Clothes priced below Rs. 1,000 are exempt from GST, while those priced at Rs. 1,000 or more attract a 5% GST rate. Ready-made garments are taxed at 12% GST, and synthetic or man-made fibers and fabrics face an 18% GST rate.<\/p>\n<h3>7. Are There Any Penalties For Non-Compliance With GST Regulations On Clothes?<\/h3>\n<p><span style=\"font-weight: 400;\">Failure to generate an E-Invoice or issue a valid <a href=\"https:\/\/razorpay.com\/blog\/tax-invoice\/\">tax invoice<\/a> for GST can lead to penalties. Businesses may face a penalty amounting to either 100% of the tax due or INR 10,000, whichever is greater, for each instance of non-compliance.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Latest Update on GST on Clothes The GST Council, during its meeting held on Saturday, December 21, 2024, proposed significant changes to the taxation structure for apparel under the Constitution of Group of Ministers (GoM). These changes aim to rationalize tax rates across different price ranges of garments. Proposed GST Rates on Ready-Made Garments: Garments<\/p>\n","protected":false},"author":151156613,"featured_media":13622,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3913],"tags":[3914,3820],"class_list":{"0":"post-12186","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gst-rates-goods-and-service-tax-rates-slabs","8":"tag-gst-on-clothes","9":"tag-gst-rates"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156613"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=12186"}],"version-history":[{"count":20,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12186\/revisions"}],"predecessor-version":[{"id":18741,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12186\/revisions\/18741"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/13622"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=12186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=12186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=12186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}