Cleaning Cloths: 6304 HSN Code GST Rate Guide To ensure accurate invoicing and being GST compliant it is essential for companies to classify cleaning cloths correctly under HSN Code 6304. Correctly classifying cleaning cloths with the proper HSN code and appropriate GST rate will assist businesses to avoid any penalties, allow them to claim ITC they are entitled to, and keep their audit records accurately. What Is HSN Code 6304 HSN Code 6304 covers "Other furnishing Articles (Excluding The products defined in HSN9404) of Chapter 63 Other Made Up Textile Articles". HSN 6304 contains a nutrient-rich matrix of Products through which textile elements provide texture, comfort, and beautification for the structure and atmosphere of homes, offices, and Commercial spaces; it also Contains various kinds of textiles for interior furnishings items, Lining; bedspreads, table linens (All sizes), Towels (bath, Beach, Hand towel), napkins and blanket coverings as decorative and functional textiles.
Under certain circumstances HSN 6304 may also include other types of cleaning cloths, cleaning cloths and the Similar Products of a Textiles-Furnishing-type clothes that have characteristics of both cleaning cloths and furnishing-type textile products (but marketed as furnishing Textile Products for multi-purpose uses) the determinative factors considered in classifying these types of cleaning cloths and furnishing-type products include Fibers/Material type (Cotton, Synthetic, Microfiber, etc.), Finishing/Setting characteristics ( Useable/Textile-Made, packaging, size, total quantity) and intended purpose.
Refer this: Sack Bags HSN Code & GST Rate - 6305
How Cleaning Clothes Are Classified Cleaning clothes may be classified with different HSN codes based on their composition and function.
HSN 6304 63049250: Cleaning Cloths made of cotton
63049999: Other Cleaning Cloths made of textile
63049260 : Cleaning Cloths made of Microfiber
Although the above classifications are specific to cleaning cloth, they are also applicable to other types of cleaning cloths.
HSN 6307 Many cleaning cloths (including floor cleaning cloths, dish towels, dust cloths and other cleaning cloths) fall within the broader category of "Other Made Up Products" when classifying under HSN 6307. These cleaning cloths will be subject to a Goods and Services Tax (GST) at 5%.
Refer here: GST Rate and HSN Code for Articles of Apparel and Clothing Accessories
GST Rates for Cleaning Cloths in India According to GST, the tax rate applicable to textile articles that fall under chapter 63 depends on the product's HSN classification, description, and value per unit. Cleaning clothes are commonly associated with HSN classifications of 6304 (made up textile articles) and 6307 (utility textile articles). Classifications of Cleaning Cloths:
HSN Code / Heading Product Description GST Rate 6304 Other furnishing textile articles (including some textile cleaning cloth sub-codes) 5% / 12% (varies by value) 6307 Floor cloths, dish-cloths, dusters & similar utility cleaning cloths 5%
HSN 6307 - 5% GST Utility cleaning cloths (floor cloths, dishcloths, dusters, wipes) - A concession (5%) applies because utility cleaning cloths are essential household textile goods.
HSN 6304 (made up/tapestry) - GST based on the value per unit Up to ₹1000 per unit - 5% GST
Over ₹1000 per unit - 12% GST
Why Classification Matters It's important to use the correct HSN classification for cleaning clothes since it could affect both your tax liability and smooth business operations under GST rules. Using an incorrect HSN classification can lead to:
Calculation of the correct amount of GST that needs to be paid.
Correctly reporting GST returns through GSTR-1, GSTR-3B , and e-invoices.
Valid claims for Input Tax Credits (ITCs) for raw materials purchased, and claims for ITCs for cleaning cloths.
Having a smooth audit/assessment process by the tax authority.
Reducing your risk of receiving notices, paying interest or being penalized for classification issues.
Maintaining consistent invoicing/accounting records for the same financial year.
Since HSN 6304 and HSN 6307 have different GST rates, even a slight misclassification error results in tax being overpaid or underpaid. This creates compliance issues.
Common Errors to Avoid Common mistakes are made by cleaning cloth businesses include:
Not verifying the product usage, finish, and presentation before choosing HSN 6304
Using a generic HSN code rather than a subclassification of the product
Incorrectly applying GST rates on an invoice, causing discrepancies and reconciliation problems with the GST amount
Applying a lump sum GST rate to HSN 6304 instead of using the appropriate slab rate based on the value of the product (threshold of ₹1,000).
Using different HSN codes for the same product on multiple invoices or to various customers
Examples - HSN Codes & GST Rates for Cleaning Cloths Product Likely HSN GST Rate Cotton dish cloth 63071030 / 6304 sub-code 5% Microfiber cleaning rag 63049260 5% / 12% (if value > ₹1,000) Industrial cleaning towel 63049999 5% / 12% Floor cleaning cloth (cotton) 63071010 / 6307 5% Kitchen wiping cloth 63071030 / 6307 5% Car cleaning microfiber cloth 63049260 5% / 12% (if value > ₹1,000) Glass cleaning cloth 63049999 / 6307 5% Dusting cloth (cotton) 63071020 / 6307 5% Reusable household cleaning cloth 63049999 5% / 12% Hotel cleaning towel 63049250 / 6304 5% / 12% (if value > ₹1,000)
Conclusion It is necessary to identify the proper HSN code and GST rate for Cleaning Cloths correctly to ensure compliance with GST. The majority of Utility Cleaning Cloths will fall under HSN 6307 which attracts 5% GST. However, some Cloth (textiles or furnishings) classified as HSN 6304 may be either 5% GST or 12% GST depending upon their value. As a result of being determined by Material and Intended Use, businesses should ensure they have verified the correct HSN to avoid GST errors and possible ITC claims with penalties attached.
Suggested Read: 6307 HSN Code for Made-up Textile Articles
FAQs What HSN codes do I use for cleaning clothes? Most textile cleaning cloths fall under the HSN Code 6304 and are sub-coded. On the other hand, dusters, floor cloths and dish-clothes may be classified under 6307 based on their type and material of construction.
Is there a 5% GST rate for cleaning clothes all the time? No, it depends on the HSN code used. Textile Cleaning Clothes are classified by Product Value and are generally classified under a broader category of Furnishings as 6304, and typically fall into the 5% or 12% GST depending on product value. Cleaning Clothes typically fall into category 6307.
Why is GST different for each HSN code? GST is different for each HSN code due to the way the Indian Tax System classifies products according to use and actual value. Therefore, similar products may fall under different HSN Codes and have different GST rates.
Will cleaning clothes have IGST on Export? Yes, cleaning cloths will have an IGST liability on export, however they may be zero rated in accordance with Export Provisions if they meet the criteria set forth in Export Notification Forms.
What should I analyze to make the correct determination on my product's HSN Code? You should place emphasis on the Product's composition, use case and whether the product has an assigned HSN code published through the Government of India or a GST Practitioner can provide guidance on the appropriate HSN Code classification and GST amount applicable on your product.
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