01.GST rates on clothes after September 2025
The GST Council simplified slabs from 22 September 2025. For ready-made garments and clothing accessories, the rate now depends on the price of each piece:
| Sale value per piece | GST rate |
|---|---|
| Up to ₹2,500 | 5% |
| Above ₹2,500 | 18% |
Before this change, the threshold was ₹1,000, with 5% below it and 12% above. If your listings or price tags still assume the old slabs, update them.
02.How the per-piece threshold affects pricing
Because the rate changes at ₹2,500, a garment priced just above the line pays far more tax than one just below. A hypothetical example:
| Price per piece | GST rate | GST in a tax-inclusive price |
|---|---|---|
| ₹2,500 | 5% | ₹119.05 |
| ₹2,600 | 18% | ₹396.61 |
Run both prices through the GST calculator and the profit calculator before you set a price close to the threshold.
03.Common HSN codes for apparel sellers
These 4-digit headings cover most fashion sellers. Use the full 8-digit code that matches your product and fabric.
| Product | Knitted (ch. 61) | Not knitted (ch. 62) |
|---|---|---|
| Women’s dresses, skirts, suits, trousers | 6104 | 6204 |
| Women’s blouses, shirts, tops | 6106 | 6206 |
| Men’s suits, trousers, shorts | 6103 | 6203 |
| Men’s shirts | 6105 | 6205 |
| T-shirts and vests | 6109 | — |
| Babies’ garments | 6111 | 6209 |
A kurti is usually classed with women’s tops or dresses depending on its cut, and whether it is knitted or woven decides the chapter. Sarees are often classified with fabrics rather than garments, so check the heading for your saree’s material.
04.Putting it on the invoice
Show the HSN code and GST rate on every line. Sellers with turnover up to ₹5 crore must show at least 4 digits on B2B invoices; above that, 6 digits. The free GST invoice generator has HSN and rate columns and works out CGST, SGST or IGST for you. For the full list of invoice fields, see GST invoice format for small sellers.
05.GST on fabric, accessories and services sellers pay
| Item | Typical treatment |
|---|---|
| Most textile fabrics | 5% GST; check your fabric’s code |
| Marketplace commission and fees | 18% GST, shown on the platform’s invoice to you |
| Courier and logistics charges | Usually 18% GST on the service |
If you are GST-registered, GST you pay on fees and courier services can usually be claimed as input tax credit against the GST you collect. Ask your accountant how this applies to you.
