Tyre Cord Fabric: GST Rates and HSN Code 5902 If you are in the textile, automotive, or tyre industry, you have probably heard about Tyre Cord Fabric a lot. It is a main material used to strengthen the tyres, providing them with durability, and safety. Apart from its technical benefits, Tyre Cord Fabric comes with specific tax implications under GST. If you use the wrong HSN code or GST rate, it can cause you various troubles, such as blocked ITC claims, audits, or penalties. This article sheds light upon everything you need to know about HSN Code 5902, the GST rate, real–world examples, compliance tips, and how Swipe can simplify your workflow.
What is Tyre Cord Fabric? Tyre Cord Fabric is an extremely tough textile that works as the base of tyre construction. Its fibres, composed of polyester, nylon, or rayon, are coated with resins to effectively stick to the rubber. Its main job is to strengthen the tyres and allow them to handle the pressure, road friction, and long-term wear and tear. Key Applications of Tyre Cord Fabric : 1. Passenger car tyres
2. Truck and bus tyres
3. Two-wheeler tyres
4. Industrial and speciality tyres
For instance, say, Generic Tyres Pvt. Ltd. in Mumbai uses polyester tyre cord fabric for passenger tyres. Every invoice they issue has the correct HSN Code 5902 mentioned with the correct GST rate, helping them for smooth ITC claims, and also saving them from any GST notices.
Quick Tip: Use Swipe now to automate HSN code verification and GST calculations for every invoice, so compliance can be taken care of without any manual effort.
What is HSN Code 5902? HSN (Harmonized System of Nomenclature) codes label goods for GST purposes, making tax application uniform. Tyre Cord Fabric, which comes under HSN Code 5902, contains textile fabrics covered with rubber or plastics. HSN 5902 Summary Table: Parameter Details HSN Code 5,902 Product Description Tyre cord fabrics and similar reinforced textiles GST Rate 12% Import Tax Type IGST @12% ITC Eligible Yes Mandatory in Invoice Yes
Using the correct HSN code as per the official site ensures accurate tax filing and prevents GST complications.
Detailed HSN Codes Under 5902 HSN Code Description GST% 590210 Of Nylon or other polyamides 12% 59021010 Impregnated with rubber 12% 59021090 Tyre cord fabric of high-tenacity yarn of nylon or other polyamides, polyesters or viscose rayon – of nylon or other polyamides: Other 12% 590220 Of polyesters 12% 59022010 Impregnated with rubber 12% 59022090 Tyre cord fabric of high-tenacity yarn of nylon or other polyamides, polyesters or viscose rayon – of polyesters: Other 12% 590290 Other 12% 59029010 Impregnated with rubber 12% 59029090 Tyre cord fabric of high-tenacity yarn of nylon or other polyamides, polyesters or viscose rayon – Other: Other 12%
GST Rate for Tyre Cord Fabric The GST rate for Tyre Cord Fabric, which is under HSN 5902, is 12%, applicable to both domestic sales and imports. Some Key Points to Remember:
1. Charge 12% GST on all B2B and B2C transactions
2. Include HSN Code 5902 in every invoice
3. Ensure import invoices match HSN 5902 for claiming IGST as ITC
4. Keep detailed records for audits
For instance, Global Textiles Importers brings in nylon tyre cord (HSN 590210) fabric from Germany. They pay IGST 12% during customs clearance and claim the same as ITC on domestic sales. Correct HSN usage streamlines both import compliance and domestic GST reporting.
Simplify GST compliance – Swipe can automatically calculate GST and apply the correct HSN code for every transaction.
Why Accurate HSN Code Matters Even small errors in HSN codes can create major problems, including:
1. Blocked ITC claims
2. GST notices or penalties
3. Delayed invoice processing
4. Issues during audits
5. Correct use of HSN Code 5902 ensures:
6. Compliance with GST rules
7. Smooth ITC claims for manufacturers and importers
8. Hassle-free audits with minimal disputes
Practical Impact of HSN 5902 on Businesses For Manufacturers Take Generic Tyres Pvt. Ltd., for example. They handle all tyre cord fabric under HSN 5902. By applying 12% GST and keeping ITC records accurate, they keep operations running smoothly without running into GST issues.
For Importers Global Textiles Importers brings in polyester tyre cord fabric from Europe. They pay 12% IGST at customs and easily claim it as ITC for domestic sales. By using the correct HSN 590220 code, they stay within the rules and keep audits stress-free.
For Small Traders S.K. Traders in Pune sell tyre cord fabric in smaller batches. Even if they have lower turnover, applying HSN 5902 code correctly along with 12% GST helps them stay within the tax limit and avoid issues..
Key Note: The HSN code depends on the type of fabric. Businesses should use the correct code as per the GST official site or the detailed HSN codes table provided earlier.
Common GST Mistakes Businesses often make errors that lead to blocked ITC or penalties. Common mistakes include:
1. Using generic textile HSN codes instead of 5902
2. Charging 18% GST instead of 12%
3. Leaving the HSN code blank on invoices
4. Misaligned import and domestic invoices
Following the proper GST practices helps you prevent unnecessary audits, ensure smooth ITC claims, and maintain your accounting clean.
GST Compliance Checklist for Tyre Cord Fabric Task Status Apply HSN Code 5902 Yes Charge 12% GST Yes Include HSN code on invoices Yes Mention product description Yes Claim ITC for B2B transactions Yes
With the above checklist in place, businesses- regardless of whether they are manufacturers, importers, or resellers can remain in line with the rules.
Best Practices for Businesses 1. Always check HSN codes before filing GST returns
2. Keep a digital record of invoices and GST payments
3. Automate GST and HSN compliance with tools like Swipe
4. Regularly train accounting staff on lathe test GST updates
5. Cross-check import and domestic invoices to ensure ITC eligibility
By implementing the above practices, you can prevent unnecessary audits and blocked ITC claims, which is very useful for SMEs and importers
Sample Invoice Using HSN Code 5902 Here's a quick look at how GST should be applied on a Tyre Cord Fibre sale invoice:
S. No Description HSN Code Qty Unit Price (INR) Total (INR) GST % GST Amt (INR) Total Incl. GST (INR) 1 Tyre Cord Fabric 5902 100 m 200 20,000 12% 2,400 22,400
Tax Calculation:
CGST @ 6% = ₹1,200
SGST @ 6% = ₹1,200
IGST @ 12% = ₹2,400
Conclusion Tyre Cord Fabric plays a vital role in both the automotive and textile industries. This is exactly why it is so necessary to use HSN Code 5902 correctly and charge 12% GST; it helps you stay compliant, preserve your ITC claims, and keep your business running seamlessly. It does not really matter if you are a manufacturer, importer, or reseller; using the right HSN code can save you time, reduce costs, and avoid any headache or stress that usually comes with filing returns.
Take control of your GST compliance today. Try Swipe now to manage HSN codes, GST rates, and ITC automatically and effortlessly.
FAQs 1. What is the GST rate for tyre cord fabric? The GST rate under HSN Code 5902 is 12%.
2. Is HSN Code 5902 mandatory on invoices? Yes, especially for businesses with turnover exceeding ₹5 crore for B2C transactions.
3. Can IGST paid on imported tyre cord fabric be claimed as Input Tax Credit? Yes, full IGST can be claimed in GST returns. Check out ITC on our blog .
4. Which products come under HSN 5902? Tyre cord fabrics, textile fabrics covered with rubber or plastics, and other tough textiles.
5. How can I check the GST rates and HSN codes? You can easily check the correct GST rates and HSN codes by visiting the main site -CBIC GST.
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