HSN Code 5205: Cotton yarn (combed/carded)
HSN code 5205 classifies cotton yarn (combed/carded) under India's GST system. GST rate: 5%.
GST Rate Breakdown
- GST Rate: 5%
- CGST + SGST (intra-state): 2.5% + 2.5%
- IGST (inter-state): 5%
Rate reflects the GST 2.0 structure effective 22 September 2025 (slabs 0%, 5%, 18%, 40%). Some items vary by price or type, so confirm the current rate on the official GST portal before invoicing.
The 5% slab covers daily-use items and essentials
The 5% slab covers daily-use items and essentials. Cotton yarn (combed/carded) sits in this bracket, keeping prices low for consumers. Full ITC available.
Sample Calculation for Cotton yarn (combed/carded)
- Taxable value: ₹10,000
- GST (5%): ₹500
- Intra-state: ₹250 CGST + ₹250 SGST
- Inter-state: ₹500 IGST
- Total: ₹10,500
When to Use HSN Code 5205
Use HSN code 5205 on every tax invoice for cotton yarn (combed/carded). Businesses above ₹5 crore turnover must use the full 6-digit code. E-invoicing requires HSN/SAC on every line item.
FAQs about HSN 5205
What is HSN code 5205?
HSN code 5205 classifies cotton yarn (combed/carded) under India's GST system. The applicable GST rate is 5%.
What is the GST rate for Cotton yarn (combed/carded)?
Cotton yarn (combed/carded) attracts 5% GST. For intra-state sales: 2.5% CGST + 2.5% SGST. For inter-state: 5% IGST.
Is Cotton yarn (combed/carded) exempt from GST?
No. Cotton yarn (combed/carded) attracts 5% GST on every taxable sale.