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HSN Chapter 51: Wool, Animal Hair & Textile Fabrics GST Rates 2026

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🧶 Textile Industry Support Initiative SEPTEMBER 22, 2025

Major GST Relief for Wool & Textile Sector:
GST 2.0 maintains the concessional 5% rate on wool, animal hair, and their fabrics under Chapter 51, supporting India's textile industry and promoting the handloom sector. This continues to make premium wool products more affordable for consumers.

Key Benefits in Chapter 51:

  • 🧵 Raw Wool: Continues at 5% GST (carded & combed wool)
  • 🐑 Animal Hair: Fine animal hair products maintain 5% rate
  • 🧶 Wool Yarn: All wool yarn varieties at 5% GST
  • 📐 Woven Fabrics: Wool & animal hair fabrics at 5%
  • Handloom Support: Encourages traditional textile craftsmanship

HSN Chapter 51 encompasses wool, fine or coarse animal hair, horsehair yarn, and woven fabrics made from these natural fibers. This chapter is essential for India's textile industry, particularly supporting the traditional handloom sector and premium fabric manufacturers across the country.

Under GST 2.0 effective September 22, 2025, the government continues its support for the textile sector with a uniform 5% GST rate on wool and animal hair products, making quality woolen products more accessible while boosting domestic textile manufacturing.

⚙️ GST 2.0 Rate Structure for Chapter 51

Simplified GST Rate Categories for Wool & Animal Hair:

  • 🟢 0% GST: Raw wool, not carded or combed (HSN 5101)
  • 🔵 5% GST: Carded/combed wool, wool yarn, animal hair, woven fabrics
  • 🟡 12% GST: Not applicable to Chapter 51
  • 🔴 18% GST: Not applicable to Chapter 51

✅ TEXTILE SECTOR ADVANTAGE: Consistent Low Taxation

GST 2.0 continues the textile-friendly tax structure for Chapter 51:

  • 🧶 Raw Wool (5101): 0% GST - Completely exempt
  • 🧵 Processed Wool (5102-5105): Only 5% GST
  • 📐 Wool Yarn (5106-5110): Maintained at 5%
  • 🏭 Woven Fabrics (5111-5113): Stable 5% rate

🐑 Raw Wool & Animal Hair (HSN 5101-5105)

Natural Fiber Foundation

Raw wool and animal hair form the foundation of India's premium textile industry, with favorable GST rates supporting both commercial production and traditional handloom sectors.

HSN 5101 - Wool, Not Carded or Combed

HSN Code Description GST 2.0 Rate Previous Rate Use
5101 11 Shorn wool, greasy, including fleece-washed wool 0% 0% Raw material for processing
5101 19 Other wool, not carded or combed 0% 0% Wool industry raw material
5101 21 Shorn wool 0% 0% Degreased/carbonized wool
5101 29 Other wool 0% 0% Specialty wool processing
5101 30 Carbonized wool 0% 0% Chemically processed wool

HSN 5102 - Fine or Coarse Animal Hair

HSN Code Description GST 2.0 Rate Previous Rate Animal Source
5102 11 Kashmir goats hair 5% 5% Cashmere production
5102 19 Other fine animal hair 5% 5% Alpaca, vicuna, mohair
5102 20 Coarse animal hair, not carded or combed 5% 5% Various animals

HSN 5103 - Waste of Wool or Animal Hair

HSN Code Description GST 2.0 Rate Previous Rate Application
5103 10 Noils of wool or of fine animal hair 5% 5% Recycled fiber production
5103 20 Other waste of wool or fine animal hair 5% 5% Sustainable textile use
5103 30 Waste of coarse animal hair 5% 5% Industrial applications

HSN 5104 - Garnetted Stock

HSN Code Description GST 2.0 Rate Previous Rate Use
5104 00 Garnetted stock of wool or animal hair 5% 5% Recycled fiber processing

HSN 5105 - Wool and Animal Hair, Carded or Combed

HSN Code Description GST 2.0 Rate Previous Rate Processing Stage
5105 10 Carded wool 5% 5% Prepared for spinning
5105 21 Combed wool in fragments 5% 5% Fine yarn production
5105 29 Other combed wool 5% 5% Premium fabric making
5105 31 Fine animal hair, carded or combed (Kashmir goats) 5% 5% Luxury textile production
5105 39 Other fine animal hair, carded or combed 5% 5% Specialty fabric use
5105 40 Coarse animal hair, carded or combed 5% 5% Industrial textiles

🧵 Wool and Animal Hair Yarn (HSN 5106-5110)

HSN 5106 - Yarn of Carded Wool

HSN Code Description GST 2.0 Rate Previous Rate Application
5106 10 Containing 85% or more by weight of wool 5% 5% Pure wool knitting
5106 20 Containing less than 85% by weight of wool 5% 5% Blended yarn production

HSN 5107 - Yarn of Combed Wool

HSN Code Description GST 2.0 Rate Previous Rate Use
5107 10 Containing 85% or more by weight of wool 5% 5% Premium wool fabrics
5107 20 Containing less than 85% by weight of wool 5% 5% Wool blend textiles

HSN 5108 - Yarn of Fine Animal Hair

HSN Code Description GST 2.0 Rate Previous Rate Fiber Type
5108 10 Carded fine animal hair yarn 5% 5% Luxury yarn production
5108 20 Combed fine animal hair yarn 5% 5% Premium cashmere, mohair

HSN 5109 - Yarn of Wool or Fine Animal Hair (Retail Sale)

HSN Code Description GST 2.0 Rate Previous Rate Market
5109 10 Containing 85% or more wool/fine hair 5% 5% Retail knitting wool
5109 90 Other yarn for retail sale 5% 5% Consumer wool products

HSN 5110 - Yarn of Coarse Animal Hair or Horsehair

HSN Code Description GST 2.0 Rate Previous Rate Application
5110 00 Yarn of coarse animal hair or horsehair 5% 5% Industrial & specialty use

📐 Woven Fabrics of Wool & Animal Hair (HSN 5111-5113)

Premium Fabric Manufacturing

Woven fabrics from wool and animal hair represent India's premium textile segment, maintaining 5% GST to support both industrial production and handloom artisans.

HSN 5111 - Woven Fabrics of Carded Wool

HSN Code Description GST 2.0 Rate Previous Rate Fabric Type
5111 11 Weight ≤300 g/m² (85%+ wool/fine hair) 5% 5% Lightweight wool fabric
5111 19 Other fabrics (85%+ wool/fine hair) 5% 5% Standard wool textiles
5111 20 Mixed mainly with man-made filaments 5% 5% Wool-synthetic blend
5111 30 Mixed mainly with man-made staple fibers 5% 5% Blended fabrics
5111 90 Other carded wool fabrics 5% 5% Various wool textiles

HSN 5112 - Woven Fabrics of Combed Wool

HSN Code Description GST 2.0 Rate Previous Rate Quality Grade
5112 11 Weight ≤200 g/m² (85%+ wool/fine hair) 5% 5% Fine premium fabrics
5112 19 Other weight (85%+ wool/fine hair) 5% 5% Premium wool textiles
5112 20 Mixed mainly with man-made filaments 5% 5% Luxury blend fabrics
5112 30 Mixed mainly with man-made staple fibers 5% 5% Quality blended textiles
5112 90 Other combed wool fabrics 5% 5% Specialty wool fabrics

HSN 5113 - Woven Fabrics of Coarse Animal Hair or Horsehair

HSN Code Description GST 2.0 Rate Previous Rate Use
5113 00 Woven fabrics of coarse animal hair/horsehair 5% 5% Industrial & upholstery

🧮 GST 2.0 Calculator for Chapter 51 Items

Wool & Textile GST Calculator - 2025 Rates

Calculate GST for wool and animal hair products using current rates:

GST 2.0 Calculation Formula:
CGST = (Product Value × GST Rate) ÷ 200
SGST = (Product Value × GST Rate) ÷ 200
Total GST = CGST + SGST
Final Amount = Product Value + Total GST

📋 GST 2.0 Compliance Points for Chapter 51

🧶 Wool Traders & Processors

  • Raw wool at 0% - No GST burden
  • Processed wool at only 5% GST
  • Simple rate structure for compliance
  • Input tax credit available
  • Supports handloom sector

🏭 Textile Manufacturers

  • Yarn at consistent 5% rate
  • Woven fabrics uniformly taxed at 5%
  • Predictable cost structure
  • Easy GST filing process
  • Competitive pricing advantage

👔 Garment Industry

  • Low input costs due to 5% GST
  • Premium wool fabrics affordable
  • Better profit margins
  • Export competitiveness
  • Quality product affordability

🎨 Handloom Artisans

  • Traditional crafts supported
  • Low tax burden on materials
  • Preserves cultural heritage
  • Sustainable livelihoods
  • Rural employment generation

🎯 GST 2.0 Sector Impact Analysis

Textile Industry Benefits

  • 🧵 Raw Material Access: 0% GST on raw wool reduces input costs
  • 💰 Cost Efficiency: 5% uniform rate simplifies pricing
  • 📈 Export Boost: Competitive pricing in global markets
  • 🎯 Handloom Support: Traditional artisans benefit from low taxation
  • 🏭 Manufacturing Growth: Encourages domestic production

Consumer Advantages

  • 👕 Affordable Woolen Products: Lower GST keeps prices reasonable
  • 🧶 Quality Access: Premium wool products more accessible
  • 🌟 Variety: Diverse wool and animal hair products available
  • ♻️ Sustainability: Natural fiber use encouraged
  • 🛍️ Better Value: Quality products at competitive prices

❓ Frequently Asked Questions (FAQs) - HSN Chapter 51

Q1: What is the GST rate on raw wool under HSN Chapter 51?

Answer: Raw wool that is not carded or combed (HSN Code 5101) attracts 0% GST, making it completely exempt from taxation. This zero-rating supports the wool processing industry by reducing input costs for manufacturers.

Once the wool is carded or combed (processed), it falls under HSN 5105 and attracts 5% GST.

Q2: What is the GST rate on wool yarn and fabrics?

Answer: All wool yarn (HSN 5106-5110) and woven fabrics made from wool or animal hair (HSN 5111-5113) attract a uniform GST rate of 5% under GST 2.0.

This includes:

  • Carded and combed wool yarn
  • Fine animal hair yarn (cashmere, mohair)
  • Woven fabrics of all weights and compositions
  • Blended wool fabrics with man-made fibers
Q3: Is Kashmir goat hair (cashmere) taxed differently under GST?

Answer: No, Kashmir goat hair (cashmere) is taxed at the same 5% GST rate as other fine animal hair products under HSN Code 5102 11 and 5105 31. This concessional rate supports India's premium textile sector and makes luxury cashmere products more affordable.

Q4: Can I claim Input Tax Credit (ITC) on wool and animal hair purchases?

Answer: Yes, registered businesses can claim Input Tax Credit (ITC) on GST paid for wool, animal hair, yarn, and fabrics purchased for business use, provided they maintain proper GST invoices and comply with GST regulations.

Note: ITC cannot be claimed on raw wool (HSN 5101) as it attracts 0% GST.

Q5: What is the difference between carded and combed wool for GST purposes?

Answer: Both carded wool (HSN 5106, 5111) and combed wool (HSN 5107, 5112) attract the same 5% GST rate. The difference is in processing quality:

  • Carded Wool: Basic processing, suitable for general textiles
  • Combed Wool: Higher quality processing for premium fabrics

Despite quality differences, GST 2.0 maintains uniform taxation at 5% for both.

Q6: Are blended wool fabrics (wool mixed with synthetic fibers) taxed at 5%?

Answer: Yes, blended wool fabrics mixed with man-made filaments or staple fibers (HSN 5111 20, 5111 30, 5112 20, 5112 30) continue to attract 5% GST under Chapter 51, regardless of the blend ratio.

This includes wool-polyester, wool-acrylic, and other synthetic blends, making blended fabrics affordable for consumers.

Q7: What is the GST rate on wool waste and garnetted stock?

Answer: Wool waste (HSN 5103) and garnetted stock (HSN 5104) attract 5% GST. This low rate encourages recycling and sustainable use of wool fibers in the textile industry.

This includes noils, other waste of wool or fine animal hair, and mechanically processed recycled wool fibers.

Q8: How has GST 2.0 (September 2025) affected wool product prices?

Answer: GST 2.0 has maintained the textile-friendly tax structure for Chapter 51 with no rate changes. The continued 0% GST on raw wool and 5% on processed products ensures:

  • Stable pricing for wool products
  • No additional tax burden on manufacturers
  • Continued support for handloom and textile sectors
  • Affordable premium wool products for consumers
Q9: What documents are needed for claiming 0% GST on raw wool?

Answer: To claim 0% GST on raw wool (HSN 5101), you need:

  • GST registration certificate
  • Tax invoice from supplier mentioning HSN Code 5101
  • Product must be truly "not carded or combed"
  • Proper classification documentation
  • Maintain records for GST audit purposes

Incorrect classification can lead to GST disputes, so ensure accurate HSN code usage.

Q10: Are horsehair and coarse animal hair products taxed the same as wool?

Answer: Yes, coarse animal hair and horsehair yarn (HSN 5110) and woven fabrics (HSN 5113) attract the same 5% GST rate as wool products under Chapter 51.

This uniform taxation across all animal hair products simplifies compliance and supports diverse textile applications including industrial and upholstery uses.

Q11: Do handloom wool products get any special GST benefits?

Answer: While there's no separate GST rate for handloom wool products, the low 5% GST rate on wool fabrics (HSN 5111-5113) significantly benefits handloom artisans by:

  • Reducing input material costs
  • Making handloom products competitively priced
  • Supporting traditional textile crafts
  • Enabling sustainable rural livelihoods

Additionally, handloom weavers can avail composition scheme benefits under GST for further simplification.

Q12: What is the GST rate on wool yarn packaged for retail sale?

Answer: Wool yarn put up for retail sale (HSN 5109) attracts 5% GST, the same as bulk wool yarn. This includes knitting wool sold in consumer-sized balls or skeins.

The uniform 5% rate across bulk and retail yarn ensures consistent pricing throughout the supply chain, benefiting both wholesalers and end consumers.

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