GST on Readymade Garments — 5% or 12% Based on Price
Updated: 3 June 2026 | CGST Act | HSN 6101–6217
GST on readymade garments: 5% for clothes priced up to ₹1,000/piece and 12% for clothes above ₹1,000/piece (HSN 6101–6217). Unstitched fabric: 5% GST regardless of value. Job work (stitching): 5%. School uniforms follow same 5%/12% rule.
₹1,000
The price threshold — garments up to ₹1,000/piece attract 5% GST; above ₹1,000 attract 12% GST.
Value is per piece, not per bill. Unstitched fabric always 5% regardless of price. Exporters: zero-rated with ITC refund.
Value is per piece, not per bill. Unstitched fabric always 5% regardless of price. Exporters: zero-rated with ITC refund.
GST Rate Chart — Garments, Fabric, Accessories
| Item | GST Rate | HSN Code | Note |
|---|---|---|---|
| Readymade garments ≤₹1,000/piece | 5% | 6101–6117 | T-shirts, shirts, trousers, salwar |
| Readymade garments >₹1,000/piece | 12% | 6101–6117 | Designer wear, formal suits |
| Cotton fabric (unstitched) | 5% | 5208–5212 | — |
| Silk fabric | 5% | 5007 | — |
| Synthetic / polyester fabric | 5% | 5407–5408 | — |
| Woollen fabric | 5% | 5111–5113 | — |
| Job work — stitching charges | 5% | 9988 | — |
| Embroidery / zari work on fabric | 12% | 9988 | — |
| Socks, stockings | 12% | 6115 | — |
| Handloom saree | 5% | 5007 | If unstitched |
Frequently Asked Questions
What is the GST rate on readymade garments?
GST on readymade garments: Up to ₹1,000 per piece (MRP or transaction value): 5% GST (HSN 6101–6117, 6201–6217). Above ₹1,000 per piece: 12% GST. This threshold is per piece, not per bill. Examples: T-shirt priced ₹999: 5% GST. Formal shirt priced ₹1,499: 12% GST. Children's school uniform ₹600: 5% GST. Designer kurta ₹2,000: 12% GST. Note: Unstitched fabric (saree, suit piece) is NOT a garment — fabric GST rates apply (5% for cotton, 5% for silk, 12% for synthetic blends over 600 GSM).
What is the GST on fabrics and unstitched cloth?
Fabric (unstitched) GST rates: Cotton fabrics: 5% GST (HSN 5208–5212). Silk fabrics: 5% GST (HSN 5007). Wool fabrics: 5% GST. Synthetic/man-made fabrics (polyester, nylon): 5% GST (HSN 5407–5408). Blended fabrics: 5% GST. Saree (unstitched): 5% GST. Suit length / dress material (unstitched): 5% GST. Key distinction: unstitched fabric = 5% regardless of value. Readymade stitched garment = 5% (≤₹1K) or 12% (>₹1K). Job work for stitching: 5% GST on job work charges. Note: All fabrics attracted uniform 5% from January 2022 after GST Council reversed the proposed rate hike.
Does GST apply to branded vs unbranded garments?
For readymade garments: branding does NOT change the GST rate. Both branded and unbranded garments pay: 5% if ≤₹1,000/piece, 12% if >₹1,000/piece. This is different from food items where branded vs unbranded matters. Luxury garments/designer wear: same rule — above ₹1,000 = 12% GST. Export of garments: zero-rated (0% GST; exporter can claim ITC refund). Import of garments: basic customs duty + IGST (12% on most readymade garments above ₹1,000). Second-hand clothes: GST on margin (margin scheme possible for dealers) — effectively 12% on profit margin if above ₹1,000.
Can garment businesses claim Input Tax Credit (ITC)?
ITC for garment manufacturers/retailers: Manufacturers: can claim ITC on fabric, accessories (buttons, zippers), machinery, factory rent, utilities — credited against GST on outward supply of garments. Traders/retailers: can claim ITC on garment purchases (from manufacturer with GST invoice). Limitation: if you sell garments at 5% but buy fabric at 5% — ITC is net-zero. Issue: some inputs like printing, embroidery: 12% GST → ITC available against 5% garment sales may result in excess ITC (refundable for exporters, accumulation for domestic). Job work: fabric sent for stitching (job work charges 5% GST) → ITC available. Composition dealer: no ITC.
What is the GST rate on school uniforms and children's clothing?
School uniforms and children's clothing: Same GST rates as adult clothing. ≤₹1,000 per piece: 5% GST. >₹1,000 per piece: 12% GST. No special exemption for school uniforms. However: government-prescribed school uniforms sold under government schemes (e.g., Samagra Shiksha, state government supply): may be exempt under specific notifications — check state-level GST exemptions. Socks, belts, ties sold as part of uniform: same rate depending on value. Note: Educational institution cannot claim ITC on uniform purchases if they use RCM or are exempt entity. Students buying uniforms from shops: pay 5% or 12% depending on price.
Related Pages
◆ Available in 71 Cities
Gst On Readymade Garments Near You
Expert CA/CS assistance for gst on readymade garments 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