---
title: "5306 HSN Code | HSN Code for Flax yarn in India"
description: "Know more about 5306 HSN Code with BUSY Accounting - HSN Tariff, GST Rates and case laws related to chapter 5306 covering Flax yarn."
canonical: "https://busy.in/hsn/sub-chapter-5306/"
---

# HSN Sub-chapter 5306: Flax yarn

Flax yarn: All goods [other than coconut coir fibre] including yarn of flax, jute, other textile bast fibres, other vegetable textile fibres; paper yarn, including coir pith compost, other than pre-packaged and labelled

Part of [Chapter 53: Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn](https://busy.in/hsn/chapter-53/).

- Current GST rate: 5%
- Earlier GST rate: 5%

## HSN codes

| Code | Title |
| --- | --- |
| 53061010 | [Single : Put up for retail sale](https://busy.in/hsn/hsn-53061010/) |
| 53061090 | [Single : Other](https://busy.in/hsn/hsn-53061090/) |
| 53062010 | [Retail sale yarn](https://busy.in/hsn/hsn-53062010/) |
| 53062090 | [Multiple (Folded) Or Cabled \| Other](https://busy.in/hsn/hsn-53062090/) |

## Frequently asked questions

### What products are classified under HSN 5306

It includes Flax yarn

### How do I bill a kit or combo that includes Flax yarn?

Prefer separate lines per item with its HSN so each component follows its own tax treatment. If it is a naturally bundled supply, identify the principal supply and tax the whole bundle accordingly.

### Any special steps when selling Flax yarn through an e‑commerce platform?

Ensure registration requirements are met and reconcile the operator’s TCS statements with your GSTR‑2B/3B. Map SKU descriptions to HSN to reduce mismatches and returns.

### What are the e‑way bill and e‑invoice points while moving Flax yarn?

Generate an e‑way bill when the consignment value exceeds ₹50,000, unless exempted for the transaction. E‑invoicing depends on turnover (AATO threshold as notified) for B2B supplies, not on the item itself.

### Can I claim ITC on inputs and services used for Flax yarn?

If your outward supply of Flax yarn is taxable, ITC is generally available (Sections 16–17) except blocked credits (e.g., personal use, motor vehicles in most cases). For exempt supplies, proportionate reversal is required under Rule 42/43.

### Can reverse charge ever apply to transactions involving Flax yarn?

Reverse charge in goods is notified only for specific categories. Most regular B2B sales of Flax yarn are forward charge. Check the current notifications for any special cases before deciding.

## India's trade performance: HSN Sub-Chapter 5306 (FY 2024-25)

Source: TradeStat EIDB, Ministry of Commerce & Industry. Values in ₹ Crore (FY 2018-19 to FY 2024-25).

- Exports: ₹159 Cr (+55.94% YoY) — 0.0043% of India's total exports
- Imports: ₹735 Cr (+31.88% YoY) — 0.0120% of India's total imports
- Trade balance: −₹576 Cr (Deficit); surplus rank #885 of 1233 sub-chapters
- Share of Chapter 53: 3.07% of its exports; import side 12.93%
- Rank within Chapter 53: #4 of 10 by export value; import-side #3

### Key metrics

- Export CAGR: 44.06% (FY 2018-19 to FY 2024-25, 7 fiscal years)
- National export rank: #747 of 1233 sub-chapters by export value (FY 2024-25)
- Peak growth year: +174.49% in FY 2019-20
- Contribution to Ch. 53: 3.07% of its exports (FY 2024-25)

## India export-import trade statistics: HSN Sub-Chapter 5306

7-year export and import data, FY 2018-19 to FY 2024-25, in ₹ Crore. Source: Ministry of Commerce & Industry, TradeStat EIDB.

| FY | Exports (₹ Cr) | Exp share | Exp YoY | Exp % of Ch. 53 | Imports (₹ Cr) | Imp share | Imp YoY | Imp % of Ch. 53 | Trade balance | Exp rank |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| FY 2018-19 | 17.80 | 0.0008% | — | 0.57% | 540.22 | 0.0150% | — | 24.27% | −522.42 | #961 |
| FY 2019-20 | 48.86 | 0.0022% | +174.49% | 1.54% | 321.44 | 0.0096% | −40.50% | 11.94% | −272.58 | #848 |
| FY 2020-21 | 22.49 | 0.0010% | −53.97% | 0.57% | 204.40 | 0.0070% | −36.41% | 11.03% | −181.91 | #932 |
| FY 2021-22 | 59.61 | 0.0019% | +165.05% | 1.18% | 430.56 | 0.0094% | +110.65% | 13.73% | −370.95 | #855 |
| FY 2022-23 | 88.63 | 0.0024% | +48.68% | 2.37% | 538.59 | 0.0094% | +25.09% | 12.83% | −449.96 | #823 |
| FY 2023-24 | 102.02 | 0.0028% | +15.11% | 2.60% | 557.07 | 0.0099% | +3.43% | 10.76% | −455.05 | #800 |
| FY 2024-25 | 159.09 | 0.0043% | +55.94% | 3.07% | 734.69 | 0.0120% | +31.88% | 12.93% | −575.60 | #747 |

- CAGR (7-year): exports 44.06%/yr, imports 5.26%/yr (consistently Deficit)

## Key trade insights: HSN Sub-Chapter 5306 export-import analysis

### Consistent export growth: 44.06% CAGR over 7 years

India's exports under HSN Sub-Chapter 5306 have grown at a compound annual rate of 44.06% over 7 fiscal years, rising from ₹17.80 Crore in FY 2018-19 to ₹159.09 Crore in FY 2024-25.

### HSN Sub-Chapter 5306 ranked #747 among all 1233 sub-chapters by export value

In FY 2024-25, HSN Sub-Chapter 5306 ranks #747 out of 1233 sub-chapters by total export value. Within Chapter 53, it ranks #4 of 10. By trade surplus, it ranks #885 of 1233.

### FY 2019-20 was the strongest growth year for HSN Sub-Chapter 5306 exports

The strongest single-year export movement for HSN Sub-Chapter 5306 was recorded in FY 2019-20, when exports surged by 174.49% over the prior year.

### India records a trade deficit of ₹575.60 Crore in HSN Sub-Chapter 5306 goods

In FY 2024-25, India's imports of ₹734.69 Cr exceeded exports of ₹159.09 Cr, resulting in a trade deficit of ₹575.60 Crore — ranking #885 of 1233 by surplus magnitude.

### Import growth of 5.26% CAGR signals stable import dependency for Flax yarn

India's imports under HSN Sub-Chapter 5306 have grown at 5.26% CAGR, reaching ₹734.69 Crore in FY 2024-25.

### HSN Sub-Chapter 5306 contributes 3.07% of Chapter 53 exports — ranked #4

Among the 10 sub-chapters under Chapter 53, HSN Sub-Chapter 5306 ranks #4 by export value — accounting for 3.07% of the chapter's total exports in FY 2024-25. On the import side, it holds 12.93% share (rank #3).

## Related Sub-Chapters in Chapter 53

Ranked by export value (FY 2024-25).

| Rank | HSN Sub-Chapter | Exports (FY 2024-25) |
| --- | --- | --- |
| #1 | [HSN Sub-Chapter 5305: Vegetable textile fibers](https://busy.in/hsn/sub-chapter-5305/) | ₹3,212 Cr |
| #2 | [HSN Sub-Chapter 5309: Woven Fabrics Of Flax](https://busy.in/hsn/sub-chapter-5309/) | ₹700 Cr |
| #3 | [HSN Sub-Chapter 5310: Jute woven fabrics](https://busy.in/hsn/sub-chapter-5310/) | ₹652 Cr |
| #4 | HSN Sub-Chapter 5306: Flax yarn (this hsn sub-chapter) | ₹159 Cr |
| #5 | [HSN Sub-Chapter 5307: Jute yarns](https://busy.in/hsn/sub-chapter-5307/) | ₹156 Cr |
| #6 | [HSN Sub-Chapter 5303: Jute and bast fibers](https://busy.in/hsn/sub-chapter-5303/) | ₹135 Cr |
| #7 | [HSN Sub-Chapter 5311: Wood charcoal products](https://busy.in/hsn/sub-chapter-5311/) | ₹90 Cr |
| #8 | [HSN Sub-Chapter 5301: Raw flax & flax waste](https://busy.in/hsn/sub-chapter-5301/) | ₹41 Cr |
| #9 | [HSN Sub-Chapter 5308: Paper and yarn](https://busy.in/hsn/sub-chapter-5308/) | ₹34 Cr |
| #10 | [HSN Sub-Chapter 5302: Raw True Hemp](https://busy.in/hsn/sub-chapter-5302/) | < ₹1 Crore |

## Other sub-chapters

| Code | Title |
| --- | --- |
| 5301 | [Raw flax & flax waste](https://busy.in/hsn/sub-chapter-5301/) |
| 5302 | [Raw True Hemp](https://busy.in/hsn/sub-chapter-5302/) |
| 5303 | [Jute and bast fibers](https://busy.in/hsn/sub-chapter-5303/) |
| 5305 | [Vegetable textile fibers](https://busy.in/hsn/sub-chapter-5305/) |
| 5307 | [Jute yarns](https://busy.in/hsn/sub-chapter-5307/) |
| 5308 | [Paper and yarn](https://busy.in/hsn/sub-chapter-5308/) |
| 5309 | [Woven Fabrics Of Flax](https://busy.in/hsn/sub-chapter-5309/) |
| 5310 | [Jute woven fabrics](https://busy.in/hsn/sub-chapter-5310/) |
| 5311 | [Wood charcoal products](https://busy.in/hsn/sub-chapter-5311/) |