T Shirts HSN Code & GST Rate - 6109 Simply put, the HSN system is a nomenclature of the worldwide importing and exporting trading goods. In India, HSN coding was established in an effort to organize the nation’s GST system and help standardize classification across the nation. Of several codes, the HSN code for t-shirts remains pivotal within the scope of the business of clothing. This paper will take you into the details of t shirt HSN code of 6109, GST rates of these products and some important compliance requirements for businesses.
Understanding HSN Codes An HSN, or Harmonized System of Nomenclature , is a system in which goods are classified for the purpose of international trade transactions and is recognized as valid worldwide. This helps businesses and governments promote easy trade and apply tariffs to imports and exports at the appropriate levels.
In India, it will be seen that the integration of HSN codes is a matter of necessity for working effectively under the GST framework. Most importantly, the adoption of HSN codes in a business minimizes the risk of under or overcharging tax liabilities as well as claiming input tax credits (ITC) if done in the right context. In most cases, T shirt garments are knitted or crocheted, and thus the HSN code is 6109.
6109 HSN Code HSN code 6109 is allotted to certain specified types of garments such as the following types of items: 1. Chapter 61 : Enumerates knitted or crocheted products that are classified as outerwear clothing or apparel or clothing accessories.
2. HSN Code 6109 : This classification is applicable against T-Shirts, singlets, and vests made of knitted stuff or crocheted fabric.
Common Products Under 6109 HSN Code 1. T-Shirts : Knitted fabrics’ T-shirts for males, females, and children.
2. Singlets : Casual or sleepwear as well as a sleeveless undergarment.
3. Vests : It is mainly worn under shirts or as casual clothing.
But while HSN code 6109 is solely and focused on knitted and crocheted items, it has no reference for non-knitted garments which have separate classification.
GST Rates Applicable to HSN 6109 The cost of t-shirts that fall under HSN code 6109 is considered and then decides the tax amount for the GST. The GST regime differentiates between basic and luxurious commodities in goods, thus t-shirts bearing less than ‘one thousand rupees’ are chargeable less than those bearing cost more than ‘one thousand rupees’. HSN Code Description Rate (%) CESS (%) Effective Date Rate Revision 6109 T-Shirts, Singlets And Other Vests, Knitted Or Crocheted 5/12 0 01/07/2017 5% 12% 61091000 Of Cotton 5/12 0 01/07/2017 5% 12% 610990 Of Other Textile Materials 5/12 0 01/07/2017 5% 12% 61099010 Of Synthetic Fibers 5/12 0 01/07/2017 5% 12% 61099020 Of Artificial Fibers 5/12 0 01/07/2017 5% 12% 61099030 Of Silk 5/12 0 01/07/2017 5% 12% 61099040 Of Wool Or Fine Animal Hair 5/12 0 01/07/2017 5% 12% 61099090 Other Textile Materials 5/12 0 01/07/2017 5% 12%
Table: GST Rates for T-Shirts (HSN Code 6109)
T shirt HSN code and GST rate 1. 5% GST Rate: These are t-shirts affordable and targeting an essential category of clothing being commonly available
2. 12% GST Rate: T shirts costing more than one thousand rupees per piece and are reputed or branded t shirts are covered under this rate.
The reasoning behind the different rates is that clothing fabrics for everyday use should be available at cheaper prices while luxury, or premium wear, should be bought at a higher tax.
Input Tax Credit (ITC) on T-Shirts under HSN 6109 Input Tax Credit (ITC) with respect to t shirt HSN Code and GST rate Since October, 2017 there has been a widespread shift across sectors and industries to modify the current indirect tax structure while minimizing the impact on trade and commerce. . The Input Tax Credit (ITC) applies to taxes paid in purchasing inputs for taxable outputs. Taxes paid in inputs can be offset against the tax on the output sales, hence minimizing the cascading taxation effect.
Any companies dealing in the business of manufacture, retail or wholesale of t-shirts classified as HSN 6109 can utilize the ITC on the tax incurred on raw materials, packaging and other input expenses.
Conditions for Claiming ITC 1. A valid tax invoice of inputs bought must be available in the possession of the business.
2. The goods must only be utilized for the purpose of trade.
3. There has to be an account of all purchases and sales of his business.
If we take this example. Suppose a retailer bought raw materials to make t-shirts the retail tax paid value of the GST on these materials can be claimed as the input tax credit. And this retailer can use this claim to reduce the amount of GST which is applicable on the taxable sale of the t-shirts.
Compliance Demands of Importance with HSN 6109 Under the regulations of GST in India, there are particular restrictions imposed with respect to the usage of HSN codes coupled with the application of GST rates. If this is flouted, sanctions may follow and also difficulties during tax audits.
Key Compliance Points 1. HSN Code Requirement: Businesses exceeding turnover of ₹5 crores are required to mention a 4 digit HSN code in their GST invoices. For businesses with turnover less than ₹5 crores however using the code is optional but is highly recommended.
2. GST Invoicing: Correct mentioning of class of HSN code for t shirts (6109) on invoices further safeguards compliance.
3. GST Rate Application: Tax discrepancies must be avoided by businesses applying the correct GST rate (5% or 12%) depending on the value of the t-shirts.
Impact of Non-Compliance 1. There can be tax audits, penalties, and legal actions taken against individuals due to wrong classifying or misapplying the t-shirt GST rate.
2. It may also have an impact on input tax credits and seamless filing of the GST returns .
Exporting T-Shirts under HSN 6109 The businesses engaged in the export of t-shirts under the HSN 6109 are also under the ambit of favorable provisions as per the GST law. Exports are considered as supplies which are zero-rated which means no gst will be levied on goods exported.
GST on Exported Goods Zero-rated: T shirts exported do not attract GST.
Refund Mechanism for Exporters Exporters up to a certain limit can file a claim for the refund of Input Tax Credit due to inputs used in making t-shirts which were exported. This refund may be claimed through the LUT scheme or through payment of IGST and then claiming for a refund.
Conclusion Effective classification of knitted or crocheted garments across the board with respect to t shirt HSN code 6109 is important in order to avoid misclassification and possible tax evasion in regards to the GST provisions. Since 5% GST is applicable on the sale of T shirts costing below ₹1000/- and 12% GST on the sale of T shirts costing more than ₹1000/- such businesses know the taxes required and will avoid losses in penalties. The HSN codes used in invoicing and overall use of input tax credits enables businesses to more effectively operate within the GST system.
You may also like to read : Refrigerator HSN Code & GST Rate
FAQs 1. What is the HSN Code for t shirts? The t-shirts come under the head HSN code 6109 which is for T-shirts, singlets, and other vests made of knitted or crocheted fabrics.
2. What are the t shirt HSN codes and their GST rates? The T-shirts HSN Code is 6109 and the t-shirts HSN rate is 5% for t-shirts up to price of Rs 1000 and 12% for above Rs 1000 t-shirts.
3. What products come under HSN code 6109? The code HSN 6109 covers T-shirts, singlets and vests, knitted or crocheted fabric garments.
4. What is the correct t-shirt GST rate? For t-shirts whose selling price is up to Rs 1000, use 5% GST and for those t-shirts with a price above Rs 1000, use 12% GST.
5. Are t-shirts qualifying for HSN code 6109 entitled to ITC under the businesses? It is possible to claim Input Tax Credit (ITC) for taxes related to the inputs utilized for manufacturing and or selling t-shirts that fall under HSN code 6109, by the firms owing any trade to such products.
People Also Ask 1. What is the HSN code for cotton sweatshirts? HSN 6101 covers men’s or boys’ cotton sweatshirts, pullovers, and similar knitted garments.
2. What is the HSN code for sleeveless T-shirts? HSN 6109 covers T-shirts, singlets, and other vests, knitted or crocheted, including sleeveless variants.
3. What is the GST rate for HSN code 9983? HSN 9983 refers to other professional, technical, and business support services, and GST rate is 18%.
4. What is the HSN code 34031900? HSN 34031900 refers to other organic surface-active agents, washing and cleaning preparations not elsewhere specified.
5. What are 18% GST items? Items with 18% GST include chocolates, soaps, detergents, plywood, paints, electrical appliances, packaged food, and cable trays.
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