Understanding HSN Classifications for Fabrics
Fabrics are used in clothing, home textiles and many industrial products. They can be made from cotton, silk, wool, linen or man made fibres and blends.
To use the fabric HSN code correctly, traders and manufacturers must understand how fabrics are grouped under HSN and how this affects GST rates and documentation.
How HSN Codes Help Classify Different Types of Fabrics?
HSN stands for Harmonised System of Nomenclature. It is a system that gives every product a code based on its material and use. Fabrics are placed in the textile section of this system.
The first two digits of an HSN code show the chapter, which tells you the broad category such as silk, wool, cotton or man made fibres. The next two digits show the heading, which narrows down the product type, for example woven fabric or knitted fabric. The last two digits show the subheading, which gives more detail such as whether the fabric is unbleached, bleached, dyed or printed.
Because of this structure, HSN codes help separate cotton fabric from silk fabric, and simple grey fabric from finished printed fabric. This makes it easier for the tax department, import and export authorities and businesses to speak the same language when they refer to fabrics.
In day to day practice, fabric traders create item groups like grey cotton fabric, dyed cotton fabric, polyester fabric and blended fabric and link each group to a suitable HSN code from the textile chapters.
| HSN Code | Product Description | Product Type or Variant | GST Rate |
|---|---|---|---|
| 5007 | Silk fabrics | Woven silk fabrics for sarees and dress materials | 5% |
| 5208 | Woven cotton fabrics | Cotton fabrics not more than 200 GSM (shirting, sheeting, light cloth) | 5% |
| 5209 | Woven cotton fabrics | Cotton fabrics more than 200 GSM (suiting, denim, heavy cloth) | 5% |
| 5407 | Man made filament fabrics | Woven polyester, viscose, nylon filament fabrics | 5% |
| 5512 | Man made staple fibre fabrics | Woven polyester, viscose and blended staple fibre fabrics | 5% |
Fabric HSN Code and Its Importance in the Textile Industry
The fabric HSN code is important because it decides which GST rate applies to a particular fabric and how that fabric appears in returns and other reports. If the wrong code is used, the wrong GST rate may be charged and returns may not match department records.
In the textile industry, there are many small variations in weave, width, fibre mix and finish. The HSN structure helps classify these variations into clear groups. For example, one heading may cover cotton fabrics, another may cover man made fabrics, and within each group there are separate entries for unbleached, bleached, dyed and printed fabrics.
Correct HSN codes also matter for export benefits, import duty and trade statistics. When exporters declare fabrics under the right HSN code, their shipments are processed faster and any benefits linked to that product category can be claimed more easily.
For GST compliance, knowing the correct fabric HSN code helps both sellers and buyers. Sellers can charge the correct GST and file accurate returns, and buyers such as garment makers can claim input tax credit based on clear invoices.
Common Fabrics and Their Corresponding HSN Codes
Cotton fabrics are usually placed in the cotton fabric chapter of the HSN list. Within this chapter, separate entries cover unbleached cotton fabric, bleached cotton fabric, dyed cotton fabric and printed cotton fabric. Thin sheeting, shirting fabric and denim fabric can all fall in the cotton fabric family, but the exact six digit code depends on the weave, weight and finish.
Silk fabrics are placed in the silk chapter. This chapter covers pure silk fabrics used for sarees, dresses and luxury garments and also some special silk mixtures. Again, different entries cover unbleached, bleached, dyed or printed silk fabrics as well as certain woven designs.
Man made fabrics such as polyester, viscose and nylon are placed in the chapters for man made filament and man made staple fibre fabrics. Blended fabrics that mix cotton with polyester or other fibres are usually classified based on the fibre that gives the character to the fabric, often the fibre that has the higher percentage by weight.
Technical fabrics and special coated fabrics such as water proof, fire resistant or industrial filter fabrics can fall in specialized headings for coated or impregnated fabrics. Their HSN codes depend on both the base fabric and the type of coating or treatment.
Because of these detailed rules, the HSN code for fabrics can change when the fabric is processed further. For example, a grey cotton fabric and the same fabric after dyeing or printing may sit under slightly different subheadings, even though both are cotton fabrics from the same broad chapter.
Conclusion
The fabric HSN code system groups textiles by fibre, form and finish and then breaks them into detailed headings for cotton, silk, wool, man made and blended fabrics.
When textile businesses map every fabric to the correct HSN code and apply the right GST slab as per the law, their invoices remain accurate and GST returns stay clear. This reduces the risk of classification disputes and helps both sellers and buyers handle pricing, export documents and input tax credit smoothly.
Jagdish Prasad is a Chartered Accountant with over 5 years of experience. He helps people and businesses with GST, income tax, and HSN codes. Jagdish makes sure his clients follow all tax rules and save money the right way. He also enjoys writing simple articles to help others understand taxes and stay updated with the latest rules.
Frequently Asked Questions
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What is the HSN code for fabrics?
There is no single HSN code for all fabrics. Cotton, silk, wool, man made and blended fabrics each sit in their own chapters and headings, and the exact six digit code depends on the fibre, weave, width and finish of the fabric.
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How are fabrics classified under HSN codes?
Fabrics are classified by fibre first and then by form and finish. The HSN system looks at whether the fabric is cotton, silk, wool or man made, and whether it is woven or knitted, unbleached, bleached, dyed or printed and sometimes its weight and use.
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Why is it important to know the HSN code for fabrics?
Knowing the correct fabric HSN code helps businesses charge the right GST rate, prepare export and import documents correctly and file accurate GST returns. It also helps buyers claim input tax credit without facing questions on classification.
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What is the HSN code for cotton and silk fabrics?
Cotton fabrics are placed in the cotton fabric chapter and silk fabrics in the silk chapter of the HSN list. Within these chapters, different entries cover unbleached, bleached, dyed and printed fabrics, so the exact six digit code depends on the type and finish of the cotton or silk fabric.
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Can the HSN code for fabrics change based on the fabric treatment
Yes. When a fabric is processed from grey to bleached, dyed, printed or coated, it may move from one subheading to another within the same broad fabric chapter. The fibre type often stays the same but the finish and use can lead to a different HSN code.