What is the GST rate on readymade garments in India?

Under GST 2.0 (effective September 22, 2025), readymade garments priced up to ₹2,500 per piece attract 5% GST. Garments priced above ₹2,500 attract 18% GST. The threshold was raised from ₹1,000 to ₹2,500, making affordable clothing cheaper.

What is the GST rate on cotton fabric?

Cotton fabric and cotton yarn attract 5% GST. HSN codes 5208–5212 for woven cotton fabric. This rate applies to all cotton fabric regardless of the end use.

What is the GST rate on footwear?

Footwear priced up to ₹2,500 per pair attracts 5% GST. Footwear above ₹2,500 attracts 18% GST. The threshold was raised from ₹1,000 to ₹2,500 under GST 2.0.

What changed for the textile industry under GST 2.0?

GST 2.0 (September 22, 2025) made three key changes for textiles: (1) Man-made fibres reduced from 18% to 5%, (2) Man-made yarns reduced from 12% to 5%, creating a uniform 5% rate across the entire man-made fibre chain, and (3) The garment threshold for 5% rate raised from ₹1,000 to ₹2,500.

Is GST applicable on handloom products?

Handloom products (fabric and garments) attract the same GST rates as other textiles — 5% for fabric, 5% for garments up to ₹2,500, and 18% for garments above ₹2,500. There is no special exemption for handloom products under GST.

What is the GST rate on readymade garments in India?

Under GST 2.0 (effective September 22, 2025), readymade garments priced up to ₹2,500 per piece attract 5% GST. Garments priced above ₹2,500 attract 18% GST. The threshold was raised from ₹1,000 to ₹2,500, making affordable clothing cheaper.

What is the GST rate on cotton fabric?

Cotton fabric and cotton yarn attract 5% GST. HSN codes 5208–5212 for woven cotton fabric. This rate applies to all cotton fabric regardless of the end use.

What is the GST rate on footwear?

Footwear priced up to ₹2,500 per pair attracts 5% GST. Footwear above ₹2,500 attracts 18% GST. The threshold was raised from ₹1,000 to ₹2,500 under GST 2.0.

What changed for the textile industry under GST 2.0?

GST 2.0 (September 22, 2025) made three key changes for textiles: (1) Man-made fibres reduced from 18% to 5%, (2) Man-made yarns reduced from 12% to 5%, creating a uniform 5% rate across the entire man-made fibre chain, and (3) The garment threshold for 5% rate raised from ₹1,000 to ₹2,500.

Is GST applicable on handloom products?

Handloom products (fabric and garments) attract the same GST rates as other textiles — 5% for fabric, 5% for garments up to ₹2,500, and 18% for garments above ₹2,500. There is no special exemption for handloom products under GST.

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GST Rates · Clothing & Textiles

GST 2.0 Updated

GST Rates on Clothing & Textiles

GST rates on clothing, textiles, and footwear in India 2026. GST 2.0 raised the 5% threshold for garments and footwear from ₹1,000 to ₹2,500, and unified the man-made fibre chain at 5%.

At 5% GST

GST 2.0 — Effective September 22, 2025

Garments and footwear up to ₹2,500: 5% (threshold raised from ₹1,000). Above ₹2,500: 18%. Man-made fibres reduced from 18% to 5%. Man-made yarns reduced from 12% to 5%.

The textile sector received significant relief under GST 2.0 (September 22, 2025). The threshold for the lower 5% rate on garments and footwear was raised from ₹1,000 to ₹2,500 per piece, making affordable clothing cheaper for middle-class consumers. The man-made fibre chain (fibre → yarn → fabric) was unified at 5%, eliminating the inverted duty structure that had plagued synthetic textile manufacturers. Premium garments above ₹2,500 now attract 18% (up from 12%).

All Clothing & Textiles — GST Rates and HSN Codes

Product / Service	HSN Code	GST Rate	Notes
Cotton Fabric and Yarn	5208	5% GST	Cotton fabric and cotton yarn attract 5% GST.
Readymade Garments (Clothing)	6101-6117	5% GST	Up to ₹1,000: 5%. Above ₹1,000: 18%.
Footwear (Shoes, Sandals, Chappals)	6401-6405	5% GST	Up to ₹1,000: 5%. Above ₹1,000: 18%.
Silk Fabric and Sarees	5007	5% GST	Silk fabric and silk sarees attract 5% GST.