HSN Chapter 52: Cotton & Cotton Fabrics GST Rates 2026
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Major GST Relief for Cotton & Textile Sector:
GST 2.0 continues the concessional tax structure for cotton products under Chapter 52, maintaining the textile-friendly 5% GST rate on most cotton items. Raw cotton supplied by farmers remains exempt, supporting India's largest employment sector.
Key Benefits in Chapter 52:
- 🌱 Raw Cotton: Completely exempt (0% GST) when supplied by farmers
- 🧵 Cotton Yarn: Uniform 5% GST on all cotton yarn varieties
- 📐 Cotton Fabrics: Woven fabrics maintain affordable 5% rate
- ♻️ Cotton Waste: Recycled materials at 5% supporting sustainability
- ✨ Handloom Boost: Khadi and handloom cotton products exempted
HSN Chapter 52 covers cotton and cotton-based products, forming the backbone of India's textile industry. This chapter includes raw cotton, cotton waste, cotton yarn (sewing thread and general purpose), and woven fabrics in various compositions and weights.
Under GST 2.0 effective September 22, 2025, the government maintains its strong support for the cotton textile sector with a simplified rate structure: 0% on raw cotton from farmers and a uniform 5% on processed cotton products, ensuring affordability and supporting millions of livelihoods.
⚙️ GST 2.0 Rate Structure for Chapter 52
Simplified GST Rate Categories for Cotton Products:
- 🟢 0% GST (Exempt): Raw cotton (not carded/combed) when supplied by farmers, Khadi products
- 🔵 5% GST: Cotton waste, carded/combed cotton, cotton yarn, cotton sewing thread, woven fabrics
- 🟡 12% GST: Not applicable to Chapter 52
- 🔴 18% GST: Not applicable to Chapter 52
✅ TEXTILE SECTOR ADVANTAGE: India's Employment Engine
GST 2.0 preserves the cotton industry's competitive edge:
- 🌱 Farmer Support: Raw cotton exempt - No tax burden on agriculture
- 🧵 Manufacturing Boost: 5% uniform rate reduces complexity
- 📈 Export Competitiveness: Low GST keeps Indian textiles globally competitive
- 👔 Garment Industry: Affordable raw materials for clothing manufacturing
- 🏭 Employment: Supports 45+ million jobs in textile value chain
🌱 Raw Cotton & Cotton Waste (HSN 5201-5202)
Foundation of India's Textile Industry
Raw cotton forms the base of India's massive textile ecosystem, with favorable GST treatment supporting both farmers and processors across the country.
HSN 5201 - Cotton, Not Carded or Combed
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Condition |
|---|---|---|---|---|
| 5201 00 | Raw cotton, not carded or combed | 0% | 0% | When supplied by farmers to registered buyers |
| 5201 00 | Cotton (other transactions) | 5% | 5% | Commercial trading |
⚠️ Important: Raw Cotton GST Exemption Rules
Raw cotton attracts 0% GST only when:
- ✅ Supplied directly by farmers (agriculturists)
- ✅ Buyer is a GST-registered person
- ✅ Cotton is in raw form (not processed/carded/combed)
For all other cotton transactions (trader to trader, processed cotton), 5% GST applies.
HSN 5202 - Cotton Waste
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Use |
|---|---|---|---|---|
| 5202 10 | Yarn waste (thread waste) | 5% | 5% | Recycled fiber production |
| 5202 91 | Garnetted stock | 5% | 5% | Low-grade yarn manufacturing |
| 5202 99 | Other cotton waste | 5% | 5% | Industrial use, sustainable textiles |
🧵 Cotton Yarn & Sewing Thread (HSN 5203-5207)
HSN 5203 - Cotton, Carded or Combed
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Processing Stage |
|---|---|---|---|---|
| 5203 00 | Cotton, carded or combed | 5% | 5% | Ready for spinning |
HSN 5204 - Cotton Sewing Thread
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Packaging |
|---|---|---|---|---|
| 5204 11 | Sewing thread, 85%+ cotton, not retail | 5% | 5% | Bulk/Industrial packaging |
| 5204 19 | Other cotton sewing thread, not retail | 5% | 5% | Blended varieties |
| 5204 20 | Cotton sewing thread for retail sale | 5% | 5% | Consumer spools |
HSN 5205 - Cotton Yarn (Single, Uncombed)
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Cotton Content |
|---|---|---|---|---|
| 5205 11 | Single yarn, 85%+ cotton, ≥714.29 decitex | 5% | 5% | Coarse yarn |
| 5205 12 | 714.29 > decitex ≥ 232.56 | 5% | 5% | Medium yarn |
| 5205 13 | 232.56 > decitex ≥ 192.31 | 5% | 5% | Fine yarn |
| 5205 14 | 192.31 > decitex ≥ 125 | 5% | 5% | Superfine yarn |
| 5205 15 | Decitex < 125 | 5% | 5% | Ultra-fine yarn |
| 5205 21-28 | Single yarn, less than 85% cotton (various counts) | 5% | 5% | Blended cotton yarn |
HSN 5206 - Cotton Yarn (Single, Combed)
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Quality |
|---|---|---|---|---|
| 5206 11-15 | Single combed yarn, 85%+ cotton (various counts) | 5% | 5% | Premium quality yarn |
| 5206 21-25 | Single combed yarn, <85% cotton (various counts) | 5% | 5% | Blended combed yarn |
HSN 5207 - Cotton Yarn (Multiple/Cabled)
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Construction |
|---|---|---|---|---|
| 5207 10 | Multiple/cabled yarn, 85%+ cotton, uncombed | 5% | 5% | Multi-ply yarn |
| 5207 90 | Other multiple/cabled yarn | 5% | 5% | Specialty yarn types |
📐 Woven Fabrics of Cotton (HSN 5208-5212)
Cotton Fabric Manufacturing
Woven cotton fabrics represent the core of India's textile industry, maintaining 5% GST to support both large-scale manufacturing and traditional handloom sectors.
HSN 5208 - Woven Fabrics (85%+ Cotton, ≤200 g/m²)
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Finish |
|---|---|---|---|---|
| 5208 11 | Plain weave ≤100 g/m², unbleached | 5% | 5% | Grey fabric |
| 5208 12 | Plain weave >100 g/m² to 200 g/m², unbleached | 5% | 5% | Medium weight grey |
| 5208 13 | 3-thread or 4-thread twill, unbleached | 5% | 5% | Twill grey fabric |
| 5208 19 | Other fabrics, unbleached | 5% | 5% | Various grey fabrics |
| 5208 21-29 | Bleached fabrics (various weaves) | 5% | 5% | White cotton fabrics |
| 5208 31-39 | Dyed fabrics (various weaves) | 5% | 5% | Solid color fabrics |
| 5208 41-49 | Yarn-dyed fabrics (various weaves) | 5% | 5% | Checks, stripes, patterns |
| 5208 51-59 | Printed fabrics (various weaves) | 5% | 5% | Printed cotton cloth |
HSN 5209 - Woven Fabrics (85%+ Cotton, >200 g/m²)
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Application |
|---|---|---|---|---|
| 5209 11-19 | Heavy fabrics, unbleached (various weaves) | 5% | 5% | Canvas, denim base |
| 5209 21-29 | Heavy fabrics, bleached | 5% | 5% | Heavy duty white fabric |
| 5209 31-39 | Heavy fabrics, dyed | 5% | 5% | Colored canvas, denim |
| 5209 41-49 | Heavy fabrics, yarn-dyed | 5% | 5% | Denim, heavy checks |
| 5209 51-59 | Heavy fabrics, printed | 5% | 5% | Printed canvas |
HSN 5210 - Mixed Cotton Fabrics (≤200 g/m²)
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Composition |
|---|---|---|---|---|
| 5210 11-59 | Cotton mixed with man-made fibers (various finishes) | 5% | 5% | Cotton-polyester blends |
HSN 5211 - Mixed Cotton Fabrics (>200 g/m²)
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Use |
|---|---|---|---|---|
| 5211 11-59 | Heavy cotton blended fabrics (various finishes) | 5% | 5% | Workwear, upholstery |
HSN 5212 - Other Woven Cotton Fabrics
| HSN Code | Description | GST 2.0 Rate | Previous Rate | Specialty |
|---|---|---|---|---|
| 5212 11-25 | Other cotton fabrics (various weights & finishes) | 5% | 5% | Specialty cotton textiles |
🧮 GST 2.0 Calculator for Chapter 52 Items
Cotton Products GST Calculator - 2025 Rates
Calculate GST for cotton and textile products using current rates:
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 52
🌱 Cotton Farmers & Ginners
- Raw cotton to registered buyers: 0% GST
- No GST burden on agricultural produce
- Supports farmer income
- Simplified compliance requirements
- Boosts rural economy
🏭 Spinning Mills & Yarn Manufacturers
- Cotton yarn at uniform 5% rate
- Input tax credit available
- Consistent pricing structure
- Export competitiveness maintained
- Simplified GST filing
🧵 Weavers & Fabric Producers
- All cotton fabrics at 5% GST
- Handloom products exempted
- Low input costs boost margins
- Supports traditional textiles
- Sustainable livelihoods
👔 Garment & Apparel Industry
- Affordable cotton fabric inputs
- 5% GST reduces manufacturing costs
- Better export pricing
- Quality product availability
- Competitive advantage
🎯 GST 2.0 Sector Impact Analysis
Cotton Textile Industry Benefits
- 🌾 Farmer Support: 0% GST on raw cotton protects agricultural income
- 💰 Cost Efficiency: 5% uniform rate on processed products simplifies pricing
- 📈 Export Growth: Low GST maintains global competitiveness
- 🎯 Employment: Supports 45+ million jobs across textile value chain
- 🏭 Make in India: Encourages domestic textile manufacturing
Consumer & Market Advantages
- 👕 Affordable Cotton Clothing: Low GST keeps garment prices reasonable
- 🧵 Quality Access: Premium cotton fabrics more accessible
- 🌟 Variety: Diverse cotton products at competitive prices
- ♻️ Sustainability: Low GST on cotton waste encourages recycling
- 🛍️ Better Value: Quality textiles at affordable rates
❓ Frequently Asked Questions (FAQs) - HSN Chapter 52
Answer: Raw cotton (HSN Code 5201) is exempt from GST (0% rate) only when it is supplied directly by farmers (agriculturists) to GST-registered buyers. This exemption supports India's cotton farmers by removing tax burden at the source.
However, if raw cotton is traded between registered dealers or processors (not directly from farmers), it attracts 5% GST.
Answer: All cotton yarn (HSN 5204-5207) and woven cotton fabrics (HSN 5208-5212) attract a uniform GST rate of 5% under GST 2.0.
This includes:
- Cotton sewing thread (for both industrial and retail use)
- Single yarn (uncombed and combed varieties)
- Multiple/cabled yarn
- Woven fabrics of all weights, compositions, and finishes
- Cotton-synthetic blended fabrics
Answer: No, Khadi products including Khadi cotton yarn and fabrics are completely exempt from GST (0% rate) to support India's traditional handloom sector and promote Gandhian values.
This exemption covers:
- Hand-spun Khadi yarn
- Hand-woven Khadi cotton fabrics
- Khadi clothing and garments
- Other Khadi textile products certified by KVIC
Answer: Yes, registered businesses can claim Input Tax Credit (ITC) on GST paid for cotton yarn, fabrics, and processed cotton products used for business purposes, provided proper GST invoices are maintained.
Important: ITC cannot be claimed on raw cotton purchased at 0% GST (directly from farmers), as no tax has been paid on such transactions.
Answer: Cotton waste including yarn waste, garnetted stock, and other cotton waste (HSN 5202) attracts 5% GST. This low rate encourages recycling and sustainable use of cotton fibers in the textile industry.
Cotton waste is used to produce low-grade yarn and textiles, supporting circular economy practices in the textile sector.
Answer: No, GST 2.0 maintains a uniform 5% GST rate on all cotton fabrics regardless of weight, weave, or finish. This applies to:
- Lightweight fabrics (≤200 g/m²) - HSN 5208, 5210
- Heavyweight fabrics (>200 g/m²) - HSN 5209, 5211
- Plain weave, twill, denim, canvas - all at 5%
- Unbleached, bleached, dyed, printed - all at 5%
Answer: No, cotton-polyester and other cotton-synthetic blended fabrics (HSN 5210, 5211) also attract the same 5% GST rate as pure cotton fabrics under Chapter 52.
This uniform rate simplifies compliance and keeps blended fabric prices competitive, supporting the garment industry that widely uses cotton-poly blends.
Answer: GST 2.0 has maintained the textile-friendly tax structure for Chapter 52 with no rate changes. The continued 0% GST on raw cotton from farmers and uniform 5% on processed products ensures:
- Stable pricing for cotton textiles
- No additional tax burden on manufacturers
- Continued support for farmers and handloom sector
- Affordable cotton products for consumers
- Global competitiveness for textile exports
Answer: To claim 0% GST exemption on raw cotton purchases from farmers, you need:
- GST registration certificate of the buyer
- Purchase invoice/bill from the farmer
- Declaration that the cotton is directly from a farmer (agriculturist)
- Cotton must be in raw form (not carded or combed)
- Maintain proper purchase records for GST audit
Proper documentation prevents disputes during GST assessments and audits.
Answer: Yes, cotton sewing thread packaged for retail sale (HSN 5204 20) attracts 5% GST, the same rate as industrial/bulk sewing thread.
This uniform taxation across retail and bulk packaging simplifies compliance and keeps consumer sewing supplies affordable.
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