GST on Clothes, Apparel & Textiles in India

Updated: 3 June 2026

Quick Answer: Readymade garments with MRP ≤ ₹1,000 attract 5% GST; garments priced above ₹1,000 attract 12% GST. Raw cotton, woven fabrics, and most yarn attract 5%. Man-made fibre yarn attracts 12%.

5% / 12%

The GST rate on clothing depends solely on the MRP printed on the product — not the selling price or brand. ₹1,000 is the dividing line for all readymade garments and footwear.

GST Rates on Readymade Garments & Apparel

The following rates apply to readymade garments, apparel, and clothing accessories sold in India under Chapter 61 and Chapter 62 of the GST tariff.

Product Category	HSN Chapter	Condition	GST Rate
Readymade garments (shirts, trousers, kurtas, etc.)	6101–6114	MRP ≤ ₹1,000 per piece	5%
Readymade garments (shirts, trousers, kurtas, etc.)	6101–6114	MRP > ₹1,000 per piece	12%
Women's apparel (sarees, blouses, etc.)	6204–6211	MRP ≤ ₹1,000	5%
Women's apparel (sarees, blouses, etc.)	6204–6211	MRP > ₹1,000	12%
Kids & infant clothing	6111–6114	MRP ≤ ₹1,000	5%
Kids & infant clothing	6111–6114	MRP > ₹1,000	12%
Footwear	6401–6405	MRP ≤ ₹1,000 per pair	5%
Footwear	6401–6405	MRP > ₹1,000 per pair	12%

GST on Fabric, Yarn & Raw Textiles

Raw materials and fabric used in the textile industry attract GST at the input stage. Manufacturers can claim ITC on these inputs against GST paid on finished garments.

Item	HSN Code	GST Rate
Raw cotton	5201–5203	5%
Cotton yarn	5205–5207	5%
Silk yarn	5004–5006	5%
Woven cotton fabrics	5208–5212	5%
Woven synthetic / man-made fibre fabrics	5407–5408, 5512–5516	5%
Man-made filament yarn (polyester, nylon)	5401–5406	12%
Man-made staple fibre yarn	5508–5511	12%
Embroidered fabric (zari, embroidery)	5810	5%
Handloom fabric	Varies	5%
Khadi fabric	Varies	5%

Branded vs. Unbranded Garments — Does It Matter?

Under GST, there is no distinction between branded and unbranded garments. The sole criterion is the MRP of the product. A ₹999 plain cotton shirt from a local market and a ₹999 branded t-shirt both attract 5% GST. A ₹1,200 unbranded shirt and a ₹1,200 designer shirt both attract 12%.

This is different from the pre-GST era, when branded readymade garments attracted excise duty and unbranded ones did not. GST simplified this by removing the branded/unbranded distinction entirely.

Input Tax Credit (ITC) for Garment Manufacturers & Traders

Registered businesses in the garment and textile supply chain — including manufacturers, wholesalers, and retailers — can claim ITC on GST paid on their inputs:

A garment manufacturer can claim ITC on GST paid on cotton, yarn, and woven fabric used as raw material.
A garment trader can claim ITC on GST paid when purchasing garments from the manufacturer.
ITC is not available to final consumers (individuals purchasing for personal use).
Exporters can claim a refund of accumulated ITC since exports are zero-rated.

Note: If a manufacturer produces both ₹1,000-and-below (5%) and above-₹1,000 (12%) garments, ITC must be proportionately allocated based on turnover from each category.

GST on Specific Textile Items

Item	GST Rate	Notes
Silk sarees (MRP ≤ ₹1,000)	5%	Based on MRP threshold
Silk sarees (MRP > ₹1,000)	12%	Based on MRP threshold
School uniforms	5% or 12%	MRP threshold applies; no exemption
Sports jerseys & activewear	5% or 12%	MRP threshold applies
Wedding lehengas / sherwanis	12%	Generally MRP > ₹1,000
Handloom sarees	5%	Handloom products: 5%
Khadi garments (via KVIC)	5% / Exempt (select)	Some KVIC outlet exemptions apply
Woollen blankets & shawls	5% or 12%	MRP threshold; Pashmina: 5% fabric

Frequently Asked Questions

Why are clothes taxed at 5% and 12% under GST — what is the threshold?

The GST Council decided to apply a value-based split: readymade garments with an MRP of ₹1,000 or less attract 5% GST, while those priced above ₹1,000 attract 12%. The idea is to keep basic, affordable clothing cheaper for the common consumer while taxing premium apparel at a higher rate. This threshold applies to the Maximum Retail Price (MRP) printed on the garment, not the selling price.

What is the GST rate on a designer saree?

A designer saree is taxed based on its MRP. If the MRP on the product is ₹1,000 or below, GST is 5%. If the MRP exceeds ₹1,000, the applicable GST rate is 12%. There is no special category for designer wear — the same threshold rule applies regardless of brand or craftsmanship.

Are exported garments subject to GST?

No. Exports of garments and textiles are zero-rated under GST (treated as supply under Section 16 of the IGST Act). This means the exporter pays 0% GST on the exported goods. Additionally, exporters can claim a refund of accumulated Input Tax Credit (ITC) on inputs used in manufacturing or trading the exported goods.

What is the GST rate on children's school uniforms?

Children's school uniforms follow the same GST rule as other garments. If the MRP per piece is ₹1,000 or less, GST is 5%. If the MRP exceeds ₹1,000, the rate is 12%. There is no GST exemption specifically for school uniforms. Khadi uniforms sold through Khadi Board outlets may qualify for concessions in some cases.

Is Khadi exempt from GST?

Khadi fabric and garments are not fully exempt from GST but enjoy the standard 5% rate on fabric. When sold through certified Khadi and Village Industries Commission (KVIC) outlets, certain Khadi products may qualify for exemptions or concessions under notifications issued by the GST Council. Buyers should confirm the exact GST applicability with the outlet at the time of purchase.

◆ Available in 71 Cities

Gst On Clothing Near You

Expert CA/CS assistance for gst on clothing across India. Click your city for local details.

→ New Delhi → Mumbai → Bengaluru (Bangalore) → Hyderabad → Chennai → Kolkata → Pune → Ahmedabad → Noida (UP) → Gurgaon (Gurugram) → Jaipur → Lucknow → Chandigarh → Surat → Kochi (Cochin) → Faridabad → Ghaziabad → Greater Noida → Panipat → Sonipat → Manesar (IMT) → Dharuhera → Mathura → Palwal → Agra → Kosi Kalan → Aligarh → Khair → Jewar (Noida International Airport) → Kanpur → Varanasi (Kashi) → Prayagraj (Allahabad) → Meerut → Bareilly → Moradabad → Gorakhpur → Firozabad → Saharanpur → Muzaffarnagar → Bulandshahr → Hapur → Karnal → Kurukshetra → Ambala → Hisar → Rohtak → Yamunanagar → Rewari → Bhiwani → Jodhpur → Udaipur → Kota → Ajmer → Bikaner → Ludhiana → Amritsar → Jalandhar → Patiala → Mohali (SAS Nagar) → Bathinda → Dehradun → Haridwar → Rudrapur → Shimla → Solan (Baddi-Barotiwala-Nalagarh) → Bhopal → Indore → Gwalior → Jammu → Srinagar → Panchkula

Ask Veda