GST on readymade garments and footwear is decided by the sale value per piece (or per pair). Up to ₹2,500 per piece → 5% GST; above ₹2,500 per piece → 18% GST. This threshold rose from ₹1,000 to ₹2,500 under GST 2.0, effective 22 September 2025 (the old 12% slab was removed). All fabric is now a uniform 5%, khadi and specified handloom are exempt, and exports are zero-rated.
GST Rate for Clothing, Footwear & Textiles
Every common clothing, footwear and fabric scenario with its post-22-Sep-2025 GST rate and HSN chapter.
| Item | Condition | GST Rate | HSN |
|---|---|---|---|
| Readymade garments (shirts, t-shirts, jeans, kurta) | Per piece ≤ ₹2,500 | 5% | 61 / 62 |
| Readymade garments (premium / designer) | Per piece > ₹2,500 | 18% | 61 / 62 |
| Children’s & school uniform wear | Per piece ≤ ₹2,500 | 5% | 61 / 62 |
| Sarees, lehenga, salwar, ethnic wear | Per piece ≤ ₹2,500 | 5% | 61 / 62 |
| Designer / embroidered ethnic wear | Per piece > ₹2,500 | 18% | 61 / 62 |
| Cotton / silk / handloom woven fabric | Any value | 5% | 50–55 |
| Man-made / synthetic fabric & yarn | Any value | 5% | 54 / 55 |
| Footwear (all materials) | Per pair ≤ ₹2,500 | 5% | 64 |
| Footwear (premium / branded) | Per pair > ₹2,500 | 18% | 64 |
| Khadi fabric & khadi garments | Any value | Exempt | — |
| Garments / textiles for export | With valid documents | 0% | — |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025 (56th GST Council). The concessional-5% cap for apparel & footwear was raised from ₹1,000 to ₹2,500 per piece/pair. Confirm the HSN on the official portal before invoicing.
How the ₹2,500 Threshold Works
For readymade garments and footwear, one number decides the slab: the transaction value per piece (per pair for footwear) at the time of supply — not the MRP or the final retail price, and not the invoice total.
Value up to ₹2,500 per piece
- Everyday shirts, t-shirts, trousers, kurta
- Most school & children’s uniforms
- Cotton / synthetic sarees & ethnic wear ≤ ₹2,500
- Footwear up to ₹2,500 per pair
- Covers the vast majority of mass-market apparel
Value above ₹2,500 per piece
- Premium jeans, designer wear, formal suits
- Embroidered / silk designer ethnic wear
- Branded footwear above ₹2,500 per pair
- Applies to the per-piece value, not the bill total
- Replaces the old 12% apparel slab
A bill for five ₹800 t-shirts (₹4,000 total) is still 5% GST — each piece is ₹800, under ₹2,500. The 18% rate kicks in only where a single garment’s value exceeds ₹2,500. Each stage of the supply chain applies the rate on its own per-piece transaction value.
Not sure which slab your product falls under?
Get My GST Rate →Fabric Is 5%, Footwear Follows the ₹2,500 Rule
GST 2.0 removed the old split where synthetic fabric and man-made yarn sat at 12%. All fabric — cotton, silk, handloom and man-made — is now a uniform 5%, which also fixes the inverted-duty problem in synthetic textiles. Footwear mirrors garments: 5% up to ₹2,500 a pair, 18% above.
- Woven & knitted fabric (all fibres): 5% — cotton, silk, handloom, polyester, viscose, blends.
- Man-made fibre & yarn: cut to 5% (was 12–18%), aligning the whole chain.
- Khadi fabric & garments: exempt (0%).
- Footwear: 5% up to ₹2,500/pair, 18% above — same threshold as garments.
- Zari, embroidery thread & sewing thread: 5% under the rationalised textile chain.
- Refer to the HSN / SAC code list to classify a specific item.
How GST Adds Up — Garment vs Premium
5% Everyday t-shirt
18% Premium jeans
Use the GST calculator to work out the tax on any value at 5% or 18%. Remember the slab is set by the per-piece value, so a ₹2,499 garment stays at 5% while a ₹2,501 garment moves to 18%.
Because full fabric is 5% and finished garments up to ₹2,500 are also 5%, the inverted-duty refund pressure on mass-market apparel largely eases — but manufacturers of premium garments (18% output) can now claim fuller Input Tax Credit on their 5% fabric and 18% overheads. Classify per-piece value carefully at every stage.
Selling garments online or in retail? Get your rate classification & returns sorted.
Get Clothing GST Advice →GST on Textile Job Work & Registration
Textile job work — dyeing, printing, embroidery, washing, cutting and stitching by a registered job worker — is a labour-intensive service. Under the rationalised job-work rates from 22 September 2025, textile job work sits in the residual job-work category; always confirm the applicable SAC rate on the portal before billing, as several job-work categories were re-slotted. The principal can claim ITC on eligible job-work GST.
You likely need GST registration if
- Turnover crosses ₹40 lakh (goods) / ₹20 lakh (services)
- You sell garments through Amazon, Flipkart, Myntra or Meesho
- You make inter-state supplies of garments or fabric
- You want to claim ITC on fabric, job work & overheads
You may stay unregistered if
- A small local shop below the turnover threshold
- Only exempt supplies (e.g. pure khadi) are made
- No inter-state or e-commerce sales are involved
- You are happy to forgo Input Tax Credit
- GST registration (GSTIN)
- Correct 5% / 18% rate classification
- HSN on every tax invoice
- Per-piece value on the invoice line
- ITC on fabric, job work & inputs
- GSTR-1 (outward supplies)
- GSTR-3B (monthly / quarterly)
- E-commerce (TCS) reconciliation
- LUT / refund for exports
- GSTR-9 annual return
Run a garment or footwear business? Get registration, rate classification & filing handled.
Talk to a GST Expert →Frequently Asked Questions
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