GST Rate on Raw cotton
The GST rate on raw cotton is 5%, under HSN code 5201 (cotton, not carded or combed). Here is the full breakdown, a worked example, and related rates in Textiles & Apparel.
GST rate breakdown for raw cotton
- GST rate: 5%
- Intra-state: 2.5% CGST + 2.5% SGST
- Inter-state: 5% IGST
- HSN code on the invoice: 5201
- Also covers: kapas
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 raw cotton
- 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 raw cotton
What is the GST rate on raw cotton?
The GST rate on raw cotton is 5%. Intra-state it is 2.5% CGST + 2.5% SGST; inter-state it is 5% IGST. Raw cotton falls under HSN code 5201.
What is the HSN code for raw cotton?
Raw cotton falls under HSN code 5201, which covers cotton, not carded or combed. Show this code on every GST tax invoice line for raw cotton.