GST Rate & HSN Code for Knitted or Crocheted Fabrics (HSN Chapter 60) Textile and garment producers constantly depend on knitted and crocheted fabrics as foundational materials to produce their merchandise. Manufacturers in both the clothing and sportswear industries and hosiery companies, and home textile businesses actively use elastic fabrics. According to Indian taxation for textiles , all sectors involved with the manufacturing, trading, and exporting must be aware of the GST Rate & HSN Code for Knitted or Crocheted Fabrics (HSN Chapter 60). This entire guide explains GST rates alongside HSN codes and includes all knitted or crocheted fabric compliance requirements and frequently asked questions.
Overview of Knitted or Crocheted Fabrics Using hook or needle techniques enables the creation of knitted and crocheted fabrics when yarns interconnect into fabrics. Knitted fabrics retain their stretchy and supple nature as a result of their two yarn sets, which interlace with each other. These properties make knitted fabrics optimal for these uses:
T-shirts and sportswear Leggings and innerwear Sweaters and cardigans Baby clothing and accessories Hosiery and socks These fabrics are classified under Chapter 60 of the HSN (Harmonised System of Nomenclature) used in GST.
HSN Code for Knitted or Crocheted Fabrics Chapter 60 of the HSN classification system covers all knitted or crocheted fabrics . Below are the major headings and their descriptions:
HSN Code Description 6001 Pile fabrics, including “long loop” pile fabrics and terry fabrics, knitted or crocheted 6002 External elastic or rubberized yarn is not allowed in these knitted or crocheted fabrics. 6003 The fabric must be knitted or crocheted with a width measuring under 30 cm and elastomeric yarn or rubber threads in its make-up 6004 Woven fabrics, except blankets, have a width of more than 30 cm and contain rubber thread or elastomeric yarn above 5% of the total weight 6005 Warp knit fabrics (which include galloon knitting machine products) fall outside heading 6001 6006 Other knitted or crocheted fabrics
Note : The detailed HSN sub-classifications depend on fiber content, width, elasticity, and intended use.
GST Rates Applicable to Knitted or Crocheted Fabrics Rate regulations for knitted or crocheted fabrics were established by the GST Council and subsequent notifications issued by the authorities:
HSN Code Description GST Rate 6001 to 6006 All varieties of knitted or crocheted fabrics 5% (when value ≤ Rs. 1000 per piece or per kg) 6001 to 6006 All varieties of knitted or crocheted fabrics 12% (when value > Rs. 1000 per piece or kg)
GST Rate Split Based on Value
When the sale value does not exceed ₹1000 for a kilogram or piece, the 5% GST tax applies. The GST amount reaches 12% for items that exceed ₹1000 in their sale value per piece or kilogram. The dual rate structure ensures affordability for basic clothing needs while applying a higher rate for premium segments.
GST Rate Changes & Notifications Significant GST rate-related notifications for knitted fabrics include:
Regularly check the outcomes of GST Council meetings because they could introduce new changes to textile GST rates.
Input Tax Credit (ITC) on Knitted Fabrics Can Manufacturers & Traders Claim ITC?
Yes, Input Tax Credit (ITC)
Yarn purchases Dyes, chemicals, and auxiliaries Packing materials Machinery and equipment Job work services However, to claim ITC:
Tax invoices must be in order. Supplier should have filed GSTR-1 and GSTR-3B . The input must be used for business purposes. Note : If knitted fabrics are sold under the composition scheme or are exempted , ITC cannot be claimed.
Compliance for Manufacturers & Traders Key GST Compliances: GST Registration : Mandatory if turnover exceeds Rs. 40 lakhs (Rs. 20 lakhs for special category states).GSTR Filing : Monthly or quarterly returns via GSTR-1 , GSTR-3B, and GSTR-9 (annual).E-Way Bill : Required for transport of goods above ₹50,000 in value (inter-state or intra-state, based on state rules).HSN Code Mention : Required on invoices (4-digit for turnover < Rs. 5 crore, 6-digit for turnover ≥ Rs. 5 crore).E-Invoicing : Mandatory if aggregate turnover exceeds prescribed limits (₹5 crore as of April 2024).Export of Knitted Fabrics under GST Exports are treated as zero-rated supplies under GST.
Key Export Benefits: No GST is levied on exports (with LUT/Bond).Refund of unutilized ITC can be claimed. Exporters can also pay IGST on exports and claim a refund later. Documents for Export: LUT/Bond Shipping Bill Invoice with HSN Code GSTR-1 and GSTR-3B filings Exporters must ensure proper classification under HSN Chapter 60 to avoid refund delays.
Invoicing & E-Invoicing Requirements An organization that handles B2B and B2C supplies must maintain accurate invoice practices.
Mandatory Invoice Details: Seller & buyer GSTIN HSN Code (6001 to 6006) Description of goods Taxable value GST rate and amount E-Invoicing: As per GST notifications:
Mandatory for businesses with a turnover of > ₹5 crore Must generate invoices via the Invoice Registration Portal (IRP) Failure to comply can lead to rejection of ITC by buyers and penalties.
Conclusion The correct HSN classification of knitted or crocheted fabrics alongside their GST rate requirement is essential knowledge for all members in the textile supply chain starting from manufacturers through exporters. Chapter 60 of the HSN classification contains diverse knitted fabrics for which proper classification leads to compliance along with better refunds and streamlined trade procedures.
It’s essential to check your product value against thresholds as GST rates depend on it so you need to maintain GST requirements including document processing and HSN mapping and electronic invoicing when needed. Business success under GST conditions requires businesses to monitor both GST Council notifications and circulars on a regular basis.
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FAQs 1. Which HSN code covers hosiery fabric production? A hosiery or elastic fabric classification system follows the HSN codes 6001, 6003, or 6004 by considering its width along with fabric composition.
2. Is GST applicable to cotton knitted fabrics? The taxation rate for cotton knitted fabrics stands at 5% when calculated by piece count or at 12% when the measurement is based on kilograms.
3. Are knitted fabrics exempt under GST? No, knitted fabrics are not exempt. They are taxed at either 5% or 12% , as per valuation.
4. Is ITC allowed on inputs used in manufacturing knitted fabrics? Yes, ITC is allowed on inputs like yarn, dyes, chemicals, and capital goods, provided the output supply is taxable
5. Can exporters claim a refund on knitted fabric GST? Yes, exporters can claim a refund of IGST or unutilized ITC through the zero-rated supply mechanism .
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