--- title: "New GST for Silk Sarees 2026: 5% / 18% Rate on Silk & Handloom" description: "New GST rate on silk sarees in 2026 is 5% to 18% on all silk, handloom and designer saree types. Busy ensures accurate GST billing on every sale and purchase." canonical: "https://busy.in/gst-rates/silk-sarees/" author: "Bharat Choudhary" published: "2025-05-19T16:11:25.000Z" category: "GST Rates" --- - The GST rate for all types of silk sarees in India, including pure, blended, handloom, and branded, is set at 5% under HSN Code 5007. - Handloom silk sarees are taxable at 5% if sold by registered sellers, branded outlets, or online platforms, but may be GST-free if sold by unregistered weavers. - Silk fabrics and raw materials for saree making are taxed at 5%, but tailored garments may face higher GST rates of 12% or 18%. - GST-registered sellers can claim Input Tax Credit on various expenses like yarn purchases, tailoring, and logistics to offset costs. - All silk sarees sold online must include a 5% GST charge, ensuring compliance across platforms like Amazon and Myntra. # New GST for Silk Sarees and Traditional Apparel: HSN Code and Rates 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](https://busy.in/gst/) rate applies when you buy or sell a silk saree? Let’s break down the complete [GST structure](https://busy.in/gst/gst-fundamentals-all-about-goods-and-services-tax-in-india/) on silk sarees and traditional ethnic wear in India. ## New GST Rate on Silk Sarees in India The Government of India is updating GST rates effective after **22 Sep 2025**. Below are the **expected new GST rates** for silk sarees and related silk fabrics (no compensation cess). | Type of Saree/Apparel | HSN Code | New 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 (for saree making) | 5007 | 5% | _Note:_ Sarees are classified by constituent fibre (e.g., silk under HSN 5007) and remain at **5%** under the updated slabs. The garment price threshold (≤/> ₹2,500) applies to Chapter 61/62 apparel, not to sarees classified as silk fabrics. ## Is GST Applicable on Silk Sarees? ✅ Yes, silk sarees are taxable under [GST](https://busy.in/gst/) . While some fabrics and handloom products are GST-exempt, silk garments, including sarees, attract a standard GST rate. These items fall under [HSN Code](https://busy.in/hsn/) 5007, which is used for woven fabrics of silk or silk waste. Live Demo Available Today ## Track Silk Saree Batch and Design Numbers in Stock Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## Old GST Rate on Silk Sarees in India ### (Old GST Rates – Applicable Until 21st September) | 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. ## GST on Handloom Silk Sarees Although handloom products receive certain exemptions, handloom silk sarees are taxable at 5% if sold by: - Registered sellers - Branded outlets - Online platforms 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](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) may not be required, making them effectively GST-free in practice. ## GST on Silk Fabrics and Dress Material If you’re buying or selling raw silk fabric, silk borders, or unstitched dress material, the GST slab is still: - 5% on silk yarn and fabric (HSN 5004, 5005, 5006) However, if stitched or converted into tailored garments, they may fall under higher GST slabs of 12% or 18%. ## Input Tax Credit (ITC) for Silk Saree Sellers [GST-registered](https://busy.in/gst/how-to-register-for-gst-in-india-a-step-by-step-guide/) sellers of silk sarees can [claim Input Tax Credit](https://busy.in/gst/what-expenses-can-be-claimed-as-itc/) on: - Yarn and fabric purchases - Tailoring or embroidery charges - Packaging and logistics - Rent and marketing services Even though the output tax is 5%, [Input Tax Credit (ITC)](https://busy.in/gst/input-tax-credit/) 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. ## About the author **Bharat Choudhary** As a Chartered Accountant with more than 8 years of experience, I have refined my skills in the field and developed a true passion for writing. I specialize in creating insightful content on topics such as GST, income tax, audits, and accounts payable. By focusing on delivering information that is both engaging and informative, I aim to share valuable insights that resonate with readers. ## Frequently asked questions ### What is the GST rate on silk sarees in India? It is **5%**, applicable to all silk sarees including handloom and branded varieties. ### Are handloom silk sarees exempt from GST? No. If sold by GST-registered sellers, handloom silk sarees attract **5% GST**. Only unregistered weavers may sell without GST. ### What is the GST on silk fabric or yarn? Silk yarn and fabric are taxed at **5%**, under **HSN 5004 to 5007**. ### Can saree sellers claim ITC on purchases? Yes. Registered sellers can claim **ITC** on yarn, transport, marketing, etc., if GST-compliant invoices are issued. ### Is GST applicable on silk sarees sold online? Yes. All online sales, including platforms like Amazon or Myntra, must charge **5% GST**. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)