BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Silk sarees are more than just clothing in India—they’re a symbol of tradition, culture, and heritage. Whether it’s a Kanjivaram, Banarasi, or handloom silk saree, these garments are widely bought for festivals, weddings, and celebrations. But what GST rate applies when you buy or sell a silk saree?
Let’s break down the complete GST structure on silk sarees and traditional ethnic wear in India.
| Type of Saree/Apparel | HSN Code | GST Rate |
|---|---|---|
| Silk sarees (pure or blended) | 5007 | 5% |
| Handloom silk sarees (unbranded) | 5007 | 5% |
| Branded/trademarked silk sarees | 5007 | 5% |
| Silk fabrics or materials | 5007 | 5% |
So, the standard gst rate on silk sarees is 5%, regardless of whether they are machine-made, handloom, or artisanal—as long as they are not sold under a composite value-added apparel model.
Although handloom products receive certain exemptions, handloom silk sarees are taxable at 5% if sold by:
If sold by individual weavers or co-operative societies directly to customers, and if the turnover is below the threshold limit (₹40 lakh), GST registration may not be required, making them effectively GST-free in practice.
If you’re buying or selling raw silk fabric, silk borders, or unstitched dress material, the GST slab is still:
However, if stitched or converted into tailored garments, they may fall under higher GST slabs of 12% or 18%.
GST-registered sellers of silk sarees can claim Input Tax Credit on:
Even though the output tax is 5%, Input Tax Credit (ITC) helps offset input expenses, making compliance beneficial for saree retailers and wholesalers.
Understanding the gst for silk sarees and traditional apparel helps buyers know what they’re paying for—and helps sellers stay compliant while keeping pricing competitive. Whether you’re a boutique owner or a weaver, knowing the correct GST slab ensures your business is both culturally rich and tax-smart.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.