Towel HSN Code for GST Filing
Towels are common textile products used in homes, hotels, hospitals and salons. Knowing the correct towel HSN code and GST rate helps fabric traders and garment units raise proper tax invoices.
This guide explains how cotton towels, hand towels and bath towels are classified under HSN and how GST applies to these textile products.
What is the HSN code for cotton, hand and bath towels?
Towels generally fall under Chapter 63 of the HSN structure which covers made up textile articles. Heading 6302 covers bed linen, table linen, toilet linen and kitchen linen which includes most cotton towels and terry towels.
Within this heading further digits can indicate whether the towel is made of cotton, other fibres or blends and whether it is terry type or other woven fabric.
| HSN Code | Product name | Product description | GST rate |
|---|---|---|---|
| 6302 | Cotton hand towels | Small cotton towels used for face and hand drying in homes and offices. | 5% |
| 6302 | Cotton bath towels and terry towels | Large cotton towels and terry towels used after bath and in hotels and gyms. | 5% |
| 6302 | Kitchen towels and wiping cloths | Towels used in kitchens and restaurants for wiping utensils and counters. | 5% |
| 6302 | Blended fibre towels | Towels made from blends of cotton with other fibres such as polyester or viscose. | 5% or 12% |
How does GST apply to cotton, hand and bath towels?
GST on towels depends on the textile rate slab and sometimes on the sale value per piece. Lower value towels meant for mass use usually fall in a concessional slab while very high value or designer towels can attract a higher rate.
When towels are supplied as part of a hotel package or spa service you may need to treat the supply as a service rather than sale of goods. In that case the GST rate will follow the rate for the main service.
Why do different types of towels have separate HSN codes?
Different types of towels may have different HSN sub headings because the fabric, weave and end use are different. Face towels, bath towels and kitchen towels can all fall under the same main heading but with different sub classifications.
This separate classification helps customs and GST authorities track trade statistics and also makes it easier for businesses to analyse sales by product category.
How to ensure correct HSN code for towels in GST returns?
To ensure correct classification you should identify fibre content, towel size and intended use at the time of product creation in your inventory master. Map each towel to the matching HSN sub heading under 6302 and fix the GST rate as per the latest textile rate notification.
Once this mapping is done, use the same code in purchase orders, sales invoices and stock records. This keeps outward supply data consistent across your GST returns and reduces the risk of classification disputes.
Conclusion
The towel HSN code under Chapter 63 is a key reference for textile traders and garment units dealing in towels and similar linen. Correct classification along with the right GST rate keeps billing transparent for both buyers and sellers.
By fixing the correct HSN code in your product master and following it in all GST documents you can avoid future notices and maintain smooth tax compliance.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions
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What is the HSN code for towels in India?
Most cotton hand towels and bath towels fall under Chapter 63 with heading 6302 which covers bed linen, table linen, toilet linen and kitchen linen.
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Are cotton towels and bath towels under the same HSN code?
Yes. Cotton face towels and bath towels are usually covered by the same main heading but may have separate sub headings based on size and fabric details.
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How does GST apply to cotton towels?
Cotton towels generally fall in a concessional GST slab, especially when the sale value per piece is within the limit notified for textile products. High value or designer towels can attract a higher slab.
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Do hotel towels use the same HSN code as retail towels?
The towel itself usually uses the same HSN code whether sold to hotels or retail customers. However when towels are supplied as part of a lodging or spa package the overall supply is taxed as a service.
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How do I apply the towel HSN code for GST filing?
Once you decide the correct HSN sub heading under 6302 you should store it in your billing software master. The same code will then flow to your outward supply details in GST returns.