GST Rate on Cotton yarn
The GST rate on cotton yarn is 5%, under HSN code 5205 (cotton yarn (combed/carded)). Here is the full breakdown, a worked example, and related rates in Textiles & Apparel.
GST rate breakdown for cotton yarn
- GST rate: 5%
- Intra-state: 2.5% CGST + 2.5% SGST
- Inter-state: 5% IGST
- HSN code on the invoice: 5205
- Also covers: cotton thread
Rates reflect the GST 2.0 structure effective 22 September 2025 (slabs 0%, 5%, 18%, 40%). Apparel and footwear above ₹2,500 per piece are taxed at 18%; up to ₹2,500 the rate is 5%. Confirm the current rate on the official GST portal before invoicing.
Worked example: GST on cotton yarn
- Taxable value: ₹10,000
- GST (5%): ₹500
- Within state: ₹250 CGST + ₹250 SGST
- To another state: ₹500 IGST
- Invoice total: ₹10,500
FAQs about GST on cotton yarn
What is the GST rate on cotton yarn?
The GST rate on cotton yarn is 5%. Intra-state it is 2.5% CGST + 2.5% SGST; inter-state it is 5% IGST. Cotton yarn falls under HSN code 5205.
What is the HSN code for cotton yarn?
Cotton yarn falls under HSN code 5205, which covers cotton yarn (combed/carded). Show this code on every GST tax invoice line for cotton yarn.