GST rate on Cotton and Cotton Products

Cotton falls under HSN code chapter 52 of GST commodity tariff schedule. 

The details about GST rate changes for sale of Cotton are being updated here.  The notification changes on exemptions for GST for sale of Cotton and other circulars related to GST for Cotton and Cotton products are updated here.

Update on 4^thJUNE, 2017: GST rates on goods

NIL GST RATE:

1. Gandhi Topi,

 2. Khadi yarn

5% GST RATE:

1. Cotton [GST HSN chapter code 5201, GST HSN chapter code 5203]

2. Cotton waste [GST HSN chapter code 5202]

3. Cotton sewing thread [GST HSN chapter code 5204]

4. Cotton yarn, other than khadi yarn [GST HSN chapter code 5205, GST HSN chapter code 5206, GST HSN chapter code 5207]

3. Cotton fabrics [GST HSN chapter code 5208, GST HSN chapter code 5209, GST HSN chapter code 5210, GST HSN chapter code 5211, GST HSN chapter code 5212] [With no refund of ITC accumulation

In India, GST is payable on cotton and cotton articles.  However, some of the categories business under HSN code 52  are expected to be exempted from paying GST.  The list of exempted commodities and services under GST is expected to be released soon.

Goods and Service Tax (GST) rate tariff in India is designed in 6 categories of goods and services. 

Four main GST rate slabs framed with

Essential goods and services, Standard goods and services and luxury goods and services with 5%, 12%, 18% and 28% respectively.  Commonly used Goods and Services at 5%, Standard Goods and Services fall under 1st slab at 12%, Standard Goods and Services fall under 2nd Slab at 18% and Special category of Goods and Services including luxury - 28%.  

The most essential goods and services attract nil rate of GST under Exempted Categories.    

Luxury goods and services and certain specific goods and services   attract additional cess than 28% GST.