HSN Chapter 58: Special Woven Fabrics, Terry Towels & Embroidery GST Rates 2026
🔍 Search Specific HSN Codes & GST Rates
Find exact GST rates for 1,195+ HSN codes instantly
🚀 Use Complete HSN Rate Finder🧵 Historic GST Relief for Specialty Textile Industry SEPTEMBER 22, 2025
Uniform 5% GST Across All Special Woven Fabrics:
GST 2.0 has brought comprehensive reform to India's specialty textile sector under Chapter 58. ALL special woven fabrics including pile fabrics, terry towels, tufted textiles, lace, tapestries, embroidery, narrow fabrics, and labels now attract a uniform 5% GST rate, down from the previous 12%, making these value-added textiles significantly more affordable and export-competitive.
Transformative Benefits for Chapter 58:
- 🛁 Terry Towels: Reduced from 12% to 5% ↓ 58% SAVINGS!
- 🎨 Pile Fabrics & Chenille: Down from 12% to 5%
- 👗 Lace & Embroidery: Reduced from 12% to 5%
- 🏷️ Labels & Badges: Now at 5% GST
- 🪡 Narrow Woven Fabrics: Uniform 5% rate
- 🎭 Tapestries & Quilted Products: Down to 5%
HSN Chapter 58 encompasses special woven fabrics and value-added textile products including pile fabrics (velvet, corduroy), chenille fabrics, terry towelling and terry fabrics (bath towels, hand towels), tufted textile fabrics, gauze, tulles, lace (machine-made and hand-made), tapestries, trimmings, embroidery, narrow woven fabrics, labels, badges, and quilted textile products. These specialty textiles serve fashion, home furnishing, hospitality, and industrial applications.
Under GST 2.0 effective September 22, 2025 and continuing through 2026, the government has implemented a strategic uniform 5% GST across all Chapter 58 products, eliminating the previous 12% rate structure. This massive 7 percentage point reduction supports India's textile value addition industry, particularly benefiting towel manufacturing hubs like Tiruppur, Karur, and Panipat, as well as embroidery clusters in Lucknow, Surat, and Delhi.
⚙️ GST 2026 Rate Structure for Chapter 58
🎯 UNIFORM 5% GST: Complete Chapter 58 at Concessional Rate!
All special woven fabrics and products now attract only 5% GST:
- 🔵 5% GST: Pile fabrics & chenille (HSN 5801) - Previously 12%
- 🔵 5% GST: Terry towelling & towels (HSN 5802) - Previously 12%
- 🔵 5% GST: Gauze fabrics (HSN 5803) - Previously 12%
- 🔵 5% GST: Tulles, lace, embroidery (HSN 5804-5810) - Previously 12%
- 🔵 5% GST: Quilted textiles & kantha (HSN 5811) - Previously 12%
- 🔵 5% GST: Narrow fabrics, labels (HSN 5806-5807) - Previously 12%
📊 Why This Matters for Specialty Textile Industry:
- ✅ Towel Industry Boost: Terry towels 7% cheaper, supporting Karur/Tiruppur
- ✅ Fashion Revival: Lace & embroidery more affordable for garments
- ✅ Export Competitiveness: Indian towels/embroidery globally competitive
- ✅ Home Textiles: Cushions, curtains, quilts more affordable
- ✅ Label Industry: Garment labels, badges cheaper for manufacturers
🛋️ Pile Fabrics & Chenille (HSN 5801)
Pile Fabrics - Reduced to 5% ↓ FROM 12%
Luxurious pile fabrics including velvet, plush, corduroy, and chenille have been reduced from 12% to 5% GST, making premium upholstery and fashion fabrics more accessible.
HSN 5801 - Woven Pile Fabrics & Chenille Fabrics
| HSN Code | Description | GST 2026 Rate | Previous Rate | Product Type |
|---|---|---|---|---|
| 5801 10 | Woven pile fabrics of wool or fine animal hair | 5% | 12% | Wool velvet, plush |
| 5801 21-23 | Uncut weft pile fabrics of cotton | 5% | 12% | Terry loops (not towel) |
| 5801 26 | Chenille fabrics of cotton | 5% | 12% | Chenille upholstery |
| 5801 27 | Warp pile fabrics (epingle/uncut) of cotton | 5% | 12% | Velvet fabrics |
| 5801 31-33 | Pile fabrics of manmade fibres (uncut weft) | 5% | 12% | Synthetic pile fabrics |
| 5801 36 | Chenille fabrics of manmade fibres (including corduroy) | 5% | 12% | Corduroy, synthetic chenille |
| 5801 37 | Warp pile fabrics of manmade fibres | 5% | 12% | Synthetic velvet |
| 5801 90 | Other pile & chenille fabrics | 5% | 12% | Specialty pile fabrics |
🛁 Terry Towelling & Terry Fabrics (HSN 5802)
🎉 MAJOR RELIEF for Towel Industry ↓ FROM 12% TO 5%
India's ₹10,000+ crore towel industry gets massive boost! Terry towelling, bath towels, hand towels, and terry fabrics reduced from 12% to 5% GST, supporting manufacturing hubs in Karur (Tamil Nadu), Tiruppur, Panipat (Haryana), and making Indian towels globally competitive.
HSN 5802 - Terry Towelling & Similar Terry Fabrics
| HSN Code | Description | GST 2026 Rate | Previous Rate | Product Type |
|---|---|---|---|---|
| 5802 11 | Terry towelling of cotton - unbleached | 5% | 12% | Raw terry cloth |
| 5802 19 | Terry towelling of cotton - bleached, dyed, printed | 5% | 12% | Bath towel fabric |
| 5802 20 | Terry towelling of other textile materials | 5% | 12% | Microfiber, bamboo towels |
| 5802 30 | Tufted textile fabrics (excluding carpets) | 5% | 12% | Tufted upholstery fabrics |
🛁 Major Indian Towel Manufacturing Clusters:
- Karur (Tamil Nadu): "Textile Capital of Tamil Nadu" - exports globally
- Tiruppur (Tamil Nadu): Towel & knitwear hub
- Panipat (Haryana): Major terry towel production
- Coimbatore (Tamil Nadu): High-quality terry products
- Solapur (Maharashtra): Traditional towel weaving
Impact: 7% GST reduction = Better export margins + Competitive pricing vs. Turkey, China, Pakistan
🎭 Gauze, Tulles & Net Fabrics (HSN 5803-5804)
HSN 5803 - Gauze (Other Than Narrow Fabrics)
| HSN Code | Description | GST 2026 Rate | Previous Rate | Use |
|---|---|---|---|---|
| 5803 00 | Gauze fabrics (other than narrow fabrics) | 5% | 12% | Medical gauze, fashion fabrics |
HSN 5804 - Tulles & Net Fabrics
| HSN Code | Description | GST 2026 Rate | Previous Rate | Application |
|---|---|---|---|---|
| 5804 10 | Tulles & other net fabrics (not woven/knitted) | 5% | 12% | Bridal wear, decorative nets |
| 5804 21-29 | Mechanically made lace (in piece/strips) | 5% | 12% | Machine lace for garments |
| 5804 30 | Hand-made lace in the piece/strips/motifs | 5% | 12% | Artisan handmade lace |
🎨 Machine-Made & Hand-Made Lace (HSN 5805-5806)
Lace & Embroidery - Fashion Industry Relief at 5%
Lace fabrics, tapestries, and narrow woven fabrics essential for fashion and garment decoration have been reduced from 12% to 5% GST, supporting India's apparel and embroidery industry.
HSN 5805-5806 - Hand-Woven Tapestries & Narrow Fabrics
| HSN Code | Description | GST 2026 Rate | Previous Rate | Product Type |
|---|---|---|---|---|
| 5805 00 | Hand-woven tapestries (Gobelins, Flanders, etc.) | 5% | 12% | Artisan wall tapestries |
| 5806 10 | Narrow woven pile & chenille fabrics | 5% | 12% | Velvet ribbons, trims |
| 5806 20 | Narrow fabrics with elastomeric yarn/rubber | 5% | 12% | Elastic bands, trims |
| 5806 31-39 | Other narrow woven fabrics (cotton, manmade) | 5% | 12% | Ribbons, tapes, webbing |
| 5806 40 | Narrow fabrics with warp without weft (bolducs) | 5% | 12% | Specialty narrow fabrics |
🏷️ Labels, Badges & Similar Articles (HSN 5807)
Labels & Badges - Garment Industry Support at 5%
Woven labels, printed labels, badges, and emblems essential for garment branding have been reduced from 12% to 5% GST, benefiting apparel manufacturers with lower input costs.
HSN 5807 - Labels, Badges & Similar Articles
| HSN Code | Description | GST 2026 Rate | Previous Rate | Product Type |
|---|---|---|---|---|
| 5807 10 | Woven labels, badges (textile materials) | 5% | 12% | Woven brand labels |
| 5807 90 | Other labels, badges (felt, nonwoven, printed) | 5% | 12% | Printed labels, tags |
🌺 Braids, Ornamental Trimmings & Embroidery (HSN 5808-5810)
HSN 5808-5810 - Trimmings & Embroidery
| HSN Code | Description | GST 2026 Rate | Previous Rate | Use |
|---|---|---|---|---|
| 5808 10 | Braids in the piece | 5% | 12% | Decorative braids |
| 5808 90 | Ornamental trimmings (tassels, pompoms) | 5% | 12% | Fashion trimmings |
| 5809 00 | Woven fabrics of metal thread/metallised yarn | 5% | 12% | Decorative metallic fabrics |
| 5810 10 | Embroidery without visible ground | 5% | 12% | Chemical lace, guipure |
| 5810 91-99 | Other embroidery (cotton, manmade, other materials) | 5% | 12% | Embroidered fabrics, patches |
🧵 Major Indian Embroidery Clusters:
- Lucknow (UP): Chikankari hand embroidery
- Surat (Gujarat): Machine embroidery hub
- Delhi/NCR: Garment embellishment industry
- Kolkata (WB): Kantha embroidery tradition
- Kashmir: Crewel work & embroidered shawls
🛏️ Quilted Textile Products & Kantha (HSN 5811)
Quilted Products & Kantha - Traditional Craft Support
Quilted textile products including traditional kantha work have been reduced from 12% to 5% GST, supporting artisan communities and making quilted home textiles more affordable.
HSN 5811 - Quilted Textile Products
| HSN Code | Description | GST 2026 Rate | Previous Rate | Product Type |
|---|---|---|---|---|
| 5811 00 10 | Kantha (multilayer stitched fabrics for bedding/clothing) | 5% | 12% | Traditional Bengali kantha |
| 5811 00 20 | Quilted wadding | 5% | 12% | Quilted padding material |
| 5811 00 90 | Other quilted textile products in piece | 5% | 12% | Quilted fabrics for cushions, bedding |
🧮 GST 2026 Calculator for Chapter 58 Items
Special Woven Fabrics GST Calculator - 2026 Uniform 5% Rate
Calculate GST for terry towels, embroidery, lace, labels & specialty textiles:
CGST = (Product Value × 5%) ÷ 2 = Product Value × 2.5%
SGST = (Product Value × 5%) ÷ 2 = Product Value × 2.5%
Total GST = CGST + SGST = Product Value × 5%
Final Amount = Product Value + Total GST
📋 GST 2026 Compliance Points for Chapter 58
🛁 Towel Manufacturers
- Terry towelling now 5% (was 12%)
- Export competitiveness improved
- Karur/Tiruppur industry boosted
- Bath/hand towels more affordable
- Hotel/hospitality sector benefits
👗 Fashion & Garment Industry
- Lace & embroidery at 5% (was 12%)
- Labels & badges cheaper
- Pile fabrics/velvet reduced
- Trimmings more affordable
- Lucknow/Surat embroidery hubs benefit
🏠 Home Textile Sector
- Quilted products at 5%
- Kantha traditional crafts supported
- Cushion covers cheaper
- Decorative fabrics affordable
- Tapestries & wall hangings
🏷️ Label & Narrow Fabric Manufacturers
- Woven labels at 5% (was 12%)
- Printed tags/badges reduced
- Ribbons & tapes cheaper
- Garment industry input costs down
- Branding materials affordable
🎯 GST 2026 Sector Impact Analysis
Specialty Textile Industry Transformation
- 🛁 Towel Exports: 7% cost reduction makes Indian towels competitive vs. Turkey/China
- 👗 Fashion Industry: Lace, embroidery, trimmings 7% cheaper
- 🏠 Home Textiles: Quilted products, cushions more affordable
- 🏷️ Garment Labels: Branding input costs reduced significantly
- 📈 Regional Clusters: Karur, Tiruppur, Panipat, Lucknow, Surat benefit
- 🇮🇳 Export Growth: Uniform 5% rate boosts global competitiveness
Strategic Industry Benefits
- 🌍 Global Competitiveness: Indian towels/embroidery match international prices
- 🎨 Artisan Support: Handmade lace, kantha, tapestries protected
- 🏭 Manufacturing Growth: Lower costs encourage domestic production
- 💼 Employment: Labor-intensive embroidery/towel sectors benefit
- ♻️ Value Addition: Encourages specialty textile manufacturing
Answer: Terry towels and terry towelling fabrics (HSN 5802) now attract 5% GST (reduced from 12%).
This includes:
- Bath towels (terry cloth)
- Hand towels
- Face towels
- Terry towelling fabrics (in piece)
- Beach towels
The 7 percentage point reduction is a massive boost for India's towel industry, particularly Karur and Tiruppur clusters.
Answer: Yes! Under GST 2.0 effective September 22, 2025, ALL products under HSN Chapter 58 attract uniform 5% GST:
- Pile fabrics & chenille - 5% (was 12%)
- Terry towels - 5% (was 12%)
- Gauze, tulles, lace - 5% (was 12%)
- Embroidery - 5% (was 12%)
- Labels & badges - 5% (was 12%)
- Quilted products & kantha - 5% (was 12%)
Answer: Woven labels, printed labels, and garment tags (HSN 5807) now attract 5% GST (reduced from 12%).
This includes:
- Woven brand labels
- Printed care labels
- Size labels & tags
- Badges & emblems
- Textile patches
Garment manufacturers benefit with 7% lower input costs on branding materials.
Answer: Yes! All embroidery products (HSN 5810) including embroidered fabrics, patches, and motifs attract 5% GST (reduced from 12%).
This benefits:
- Chikankari embroidery (Lucknow)
- Machine embroidery (Surat)
- Kantha embroidery (Kolkata)
- Crewel work (Kashmir)
- Fashion embroidered fabrics
Answer: Velvet, corduroy, and all pile fabrics (HSN 5801) now attract 5% GST (reduced from 12%).
This includes:
- Cotton velvet
- Synthetic velvet
- Corduroy fabrics
- Chenille upholstery
- Plush fabrics
Furniture and fashion industries benefit from this 58% GST reduction.
Answer: Yes, registered towel manufacturers can claim full Input Tax Credit on 5% GST paid on terry fabrics and inputs when:
- ✅ Used for manufacturing taxable towels
- ✅ Proper GST invoices maintained
- ✅ Business is registered and compliant
This improves cash flow for towel manufacturing units in Karur, Tiruppur, and Panipat.
Answer: Kantha and quilted textile products (HSN 5811) attract 5% GST (reduced from 12%).
This includes:
- Traditional Bengali kantha work
- Quilted bedspreads
- Quilted cushion covers
- Quilted wadding/padding
- Multilayer stitched textiles
Supports artisan communities and makes quilted home textiles more affordable.
Answer: Yes! Lace, tulles, and net fabrics (HSN 5804) now attract 5% GST (reduced from 12%).
This includes:
- Machine-made lace
- Hand-made lace
- Tulle and net fabrics
- Bridal lace
- Decorative netting
Fashion and bridal wear industries benefit significantly.
Answer: The 5% GST significantly enhances India's towel export competitiveness:
- Zero-rated exports: Exporters claim refund of 5% GST on inputs
- Cost advantage: 7% reduction improves margins vs. Turkey, China
- Quality perception: Indian towels now price-competitive at premium quality
- Karur advantage: World's towel capital benefits from lower costs
India exports ₹8,000+ crore of terry towels annually - this reform is game-changing!
Answer: The uniform 5% GST rate for all Chapter 58 products became effective from September 22, 2025 under GST 2.0 reforms.
Timeline:
- Before Sept 22, 2025: Most products at 12%
- After Sept 22, 2025: ALL products uniformly at 5%
- Continues in 2026: No further changes announced
🔗 Explore Related HSN Chapters
🚀 Popular Services
🏢 Business Registration
Start your business legally
Need Expert Help?
We're here to assist you with