GST on apparel is charged at 5% for any garment priced up to ₹2,500 per piece and 18% for garments priced above ₹2,500 per piece. The threshold is per individual piece, not per invoice. This is the position after GST 2.0 (effective 22 September 2025), which raised the concessional limit from ₹1,000 to ₹2,500 and moved the higher slab from 12% to 18%. Unstitched fabric stays at 5%; KVIC-certified Khadi is Nil.
GST Rate for Apparel — Decision Table
The GST rate for every common clothing and textile scenario, with the relevant HSN code. Branded vs unbranded makes no difference — only the price per piece decides 5% or 18%.
| Item | GST Rate | HSN | Notes |
|---|---|---|---|
| Stitched garment ≤ ₹2,500/piece | 5% | 6101–6217 | T-shirt, kurta, school frock, most daily wear |
| Stitched garment > ₹2,500/piece | 18% | 6101–6217 | Suits, designer wear, premium jackets |
| Unstitched fabric (all types) | 5% | 5007–5516 | Cotton, silk, polyester, wool — 5% regardless of value |
| KVIC-certified Khadi garments | Nil | — | Genuine KVIC Khadi & Khadi fabric — exempt |
| Handloom saree / dhoti (unstitched) | 5% | 5007 / 6302 | Handloom products |
| Job work — stitching / tailoring | 5% | 9988 | Textile job-work service |
| Sports apparel ≤ ₹2,500/piece | 5% | 6101–6217 | Same value rule as ordinary garments |
| Sports apparel > ₹2,500/piece | 18% | 6101–6217 | Premium branded jerseys / activewear |
| Safety / hi-vis clothing | 18% | 6101–6217 | Usually above ₹2,500/piece |
| Footwear ≤ ₹2,500/pair | 5% | 6401–6405 | See GST on footwear |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025 (56th GST Council). Confirm on the official GST portal before invoicing.
Which GST Rate Applies to Your Garment?
For stitched clothing, one number decides it: the sale price of a single piece. At or below ₹2,500 the garment is taxed at 5%; above ₹2,500 it is taxed at 18%. The threshold is applied garment-by-garment — a ₹9,000 invoice of ten ₹900 T-shirts is still all 5%.
Garment ≤ ₹2,500 per piece
- Everyday wear — T-shirts, kurtas, trousers
- Children's clothing & school uniforms
- Most mass-market retail garments
- Full input-tax credit available
- HSN 6101–6217
Garment > ₹2,500 per piece
- Suits, blazers & formal wear
- Designer & premium branded apparel
- Wedding & occasion wear
- Full input-tax credit available
- Same HSN 6101–6217, higher slab
Before 22 September 2025 the split was ₹1,000 (5% below, 12% above). GST 2.0 raised the concessional limit to ₹2,500 per piece and moved the upper slab to 18% (the old 12% slab was scrapped). So more affordable clothing now sits at 5%, while premium garments above ₹2,500 pay 18% instead of 12%.
Selling a mix of price points? Get your rate mapping and invoicing set up correctly.
Get My GST Rate →How GST Adds Up — Below vs Above ₹2,500
5% Kurta priced ₹1,500
18% Blazer priced ₹5,000
Because the threshold is per piece, the exact same style can attract different rates at different price points. A retailer must classify each SKU by its selling price, not by the total bill value.
Charge 5% when
- The garment's price per piece is ₹2,500 or less
- It is unstitched fabric (5% at any value)
- It is a handloom saree, dhoti or gamcha
Charge 18% when
- The garment's price per piece exceeds ₹2,500
- It is premium / designer / occasion wear above ₹2,500
- It is embroidery or a service taxed at 18%
Run garment prices through our calculator to see the GST at each slab.
Open GST Calculator →Fabric, Khadi and Handloom GST
Unlike stitched garments, fabric is taxed at a flat 5% regardless of value — cotton, silk, polyester, wool and blends all fall in the 5% band. Job work such as stitching and tailoring is also 5% under SAC 9988.
- Unstitched fabric — 5% GST at any price (HSN 5007–5516).
- KVIC-certified Khadi fabric & garments — Nil (exempt) when sold through KVIC / certified Khadi institutions.
- Handloom sarees, dhotis, gamchas, towels — 5% GST.
- Cottage-industry weavers below the ₹40 lakh goods threshold — no GST registration needed, no GST charged.
The Khadi exemption applies only to genuine KVIC-certified Khadi — not merely "khadi-look" fabric. Ordinary Khadi-style garments sold outside the KVIC channel follow the normal 5%/18% price-per-piece rule. Keep KVIC certification on file to support the Nil rate on an invoice.
Confused between fabric, garment and Khadi rates for your product line?
Talk to a GST Expert →Apparel Business GST Compliance
A garment trader supplies goods, so registration is mandatory once aggregate turnover crosses ₹40 lakh for goods (₹20 lakh in special-category states). Here is the compliance picture for a clothing brand, retailer or manufacturer:
- GST registration (GSTIN)
- Correct 5% / 18% rate per SKU
- HSN code on every invoice
- Tax invoice / bill of supply
- GSTR-1 (outward supplies)
- GSTR-3B (monthly / quarterly)
- ITC on inputs & packaging
- E-invoicing (if applicable)
- E-way bill for goods movement
- GSTR-9 annual return
- Khadi / handloom exemption proof
- Books & stock records upkeep
The single most common apparel GST error is applying one rate to the whole bill. GST is decided per garment — mix a ₹1,800 shirt (5%) and a ₹4,000 coat (18%) on one invoice and each line must carry its own rate. Discounts that drop a piece to ₹2,500 or below can also shift it into the 5% slab.
Frequently Asked Questions
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