Understanding HS Code For Cotton Fabric
Cotton fabrics form the backbone of India’s textile and garment industry. To regulate international trade and taxation, every cotton product is assigned a specific HS (Harmonized System) code.
Cotton and cotton-based textiles are covered under Chapter 52 – Cotton, which includes raw cotton, cotton yarn, woven fabrics, and other cotton-based textiles. Within this chapter, each category is broken down further by weight, blend, and finish.
Correct HS code classification ensures smooth customs clearance, proper GST calculation, and eligibility for trade benefits.
Importance Of HS Code For Cotton Fabric
Cotton fabrics are one of India’s top export items. Getting the HS code right is crucial because:
- Customs Duties: Ensures correct import/export duty is applied.
- GST Compliance: Determines the GST rate applicable in India.
- International Recognition: HS codes are standardized globally, easing cross-border trade.
- Trade Agreements: Helps businesses avail lower duties under FTAs and preferential schemes.
HS Code Classification For Cotton Fabrics
Cotton fabrics have several HS codes depending on their type and characteristics:
- 5208 – Woven fabrics of cotton containing 85% or more cotton, weighing not more than 200 g/m²
- 5209 – Woven fabrics of cotton containing 85% or more cotton, weighing more than 200 g/m²
- 5210 – Woven fabrics of cotton, mixed with man-made fibers, weighing not more than 200 g/m²
- 5211 – Woven fabrics of cotton, mixed with man-made fibers, weighing more than 200 g/m²
These codes cover a wide variety of fabrics including shirting, dress material, denim, canvas, sheeting, and suiting fabrics.
GST Rates For Cotton Fabrics In India
Cotton fabric has historically been placed in the 5% GST slab to keep textiles affordable. The GST rate is applied on the value of supply. For cotton yarn, GST is also at 5%, while raw cotton supplied by farmers is exempt.
This favorable rate supports India’s textile sector by making cotton fabrics competitive in both domestic and export markets.
HS Codes And GST Rates For Cotton Fabric
Below is a detailed table with popular cotton fabric products, HS codes, and their GST rates:
🧵 GST Rates on Cotton & Cotton-Based Products (2025 vs Earlier)
| 🌾 Product | 📦 HS Code | 📋 Category | 💰 GST Rate (2025) | 📅 Earlier Rate |
|---|---|---|---|---|
| 🌱 Raw Cotton | 520100 | Uncarded, uncombed cotton | Exempt | Exempt |
| 🧶 Cotton Yarn (Single) | 520511 | 85%+ cotton, uncombed | 5% | 5% |
| 🧵 Cotton Yarn (Folded) | 520531 | 85%+ cotton, combed | 5% | 5% |
