HSN Chapter 53: Vegetable Textile Fibres, Jute & Coir GST Rates 2026

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🌿 Natural Fibre Industry Support FEBRUARY 2026

Strategic GST Support for Eco-Friendly Textiles:
GST 2.0 continues India's commitment to sustainable and natural fiber industries with preferential taxation under Chapter 53. Raw jute and coconut coir fibers remain completely exempt, while processed vegetable fibers enjoy concessional 5% GST, supporting millions of rural livelihoods.

Key Benefits in Chapter 53:

🌱 Raw Jute: Completely exempt (0% GST) - No tax burden on farmers
🥥 Coconut Coir: Full exemption (0% GST) supporting Kerala & coastal economies
🧵 Processed Fibres: Uniform 5% GST on yarn and fabrics
♻️ Sustainability: Eco-friendly natural fibers promoted through low taxation
🏡 Rural Employment: Supports traditional cottage industries and artisans

HSN Chapter 53 covers other vegetable textile fibres including jute, flax, true hemp, coconut coir, abaca, ramie, and paper yarn along with their woven fabrics. These natural, biodegradable fibers form an essential part of India's sustainable textile ecosystem and traditional handicraft industries.

Under GST 2.0 continuing into 2026, the government maintains strong support for natural fiber industries with strategic exemptions on raw materials (jute and coir at 0% GST) and minimal taxation on processed products (5% GST), ensuring environmental sustainability while protecting rural livelihoods.

⚙️ GST 2.0 Rate Structure for Chapter 53

Simplified GST Rate Categories for Vegetable Fibres:

🟢 0% GST (Exempt): Raw jute fibres (HSN 5303), Coconut coir fibres (HSN 5305)
🔵 5% GST: Flax, hemp, processed jute, coir yarn, woven fabrics, paper yarn
🟡 12% GST: Not applicable to Chapter 53
🔴 18% GST: Not applicable to Chapter 53

✅ SUSTAINABLE TEXTILE ADVANTAGE: Green India Initiative

GST 2.0 promotes eco-friendly natural fibers:

🌱 Farmer Protection: Raw jute & coir exempt - Zero tax on agriculture
♻️ Environmental Focus: Biodegradable fibers encouraged through low GST
📈 Export Potential: Competitive pricing for global eco-conscious markets
🏡 Rural Livelihoods: Supports 4+ million jute workers across West Bengal, Bihar
🌍 Make in India Green: Promotes sustainable manufacturing

🌾 Flax & Hemp (HSN 5301-5302)

Premium Natural Fibers

Flax and hemp are high-quality natural fibers used in premium textiles, with 5% GST supporting domestic processing and linen fabric manufacturing.

HSN 5301 - Flax, Raw or Processed

HSN Code	Description	GST 2026 Rate	Previous Rate	Use
5301 10	Flax, raw or retted	5%	5%	Raw material for linen
5301 21	Flax, broken or scutched	5%	5%	Processed flax fiber
5301 29	Other flax, processed but not spun	5%	5%	Ready for spinning
5301 30	Flax tow and waste	5%	5%	Low-grade products

HSN 5302 - True Hemp (Cannabis sativa)

HSN Code	Description	GST 2026 Rate	Previous Rate	Application
5302 10	True hemp, raw or processed but not spun	5%	5%	Industrial hemp fiber
5302 90	Tow and waste of true hemp	5%	5%	Hemp waste products

🌱 Jute & Textile Bast Fibres (HSN 5303)

India's Golden Fibre - Complete GST Exemption

Raw jute, the backbone of West Bengal and Bihar's rural economy, enjoys complete GST exemption (0%), protecting millions of farmer and worker livelihoods while supporting India's eco-friendly packaging industry.

HSN 5303 - Jute and Other Textile Bast Fibres

HSN Code	Description	GST 2026 Rate	Previous Rate	Condition
5303 10	Jute, raw or retted	0%	0%	Raw jute fibers - Completely exempt
5303 90	Jute, processed but not spun; tow & waste	5%	5%	Processed jute products

⚠️ Important: Raw Jute GST Exemption

Raw jute (HSN 5303 10) is completely exempt from GST (0% rate) when:

✅ In raw or retted form (not processed beyond retting)
✅ Supports jute farmers in West Bengal, Bihar, Assam, Odisha
✅ No GST burden on agricultural produce

Once jute is processed (carded, combed, or spun), it attracts 5% GST.

🥥 Coconut Coir & Other Vegetable Fibres (HSN 5305)

Coir Industry Support - Complete GST Exemption

Coconut coir fibers and products enjoy 0% GST, supporting Kerala's traditional coir industry and coastal economies across India.

HSN 5305 - Coconut Coir and Other Fibres

HSN Code	Description	GST 2026 Rate	Previous Rate	Industry
5305 00 10	Coir bristle fibre, mattress fibre, short fibre	0%	0%	Coir industry products
5305 00 30	Curled or machine twisted coir fibre	0%	0%	Processed coir fiber
5305 00 40	Coir pith (briquette, coins, grow bags, manure)	0%	0%	Horticulture & agriculture use
5305 00 50	Abaca (Manila hemp)	5%	5%	Specialty natural fiber
5305 00 90	Other vegetable textile fibres (ramie, sisal, etc.)	5%	5%	Diverse natural fibers

🥥 Coir Industry Benefits from 0% GST:

Supports 500,000+ coir workers in Kerala, Tamil Nadu, Karnataka
Promotes eco-friendly natural fiber products
Zero tax burden on traditional cottage industries
Encourages sustainable packaging alternatives
Boosts rural employment and women's empowerment

🧵 Yarn of Vegetable Textile Fibres (HSN 5306-5308)

HSN 5306 - Yarn of Flax

HSN Code	Description	GST 2026 Rate	Previous Rate	Use
5306 10	Flax yarn, single	5%	5%	Linen fabric weaving
5306 20	Flax yarn, multiple or cabled	5%	5%	Premium linen textiles

HSN 5307 - Yarn of Jute or Bast Fibres

HSN Code	Description	GST 2026 Rate	Previous Rate	Application
5307 10	Jute yarn, single	5%	5%	Jute bags, packaging
5307 20	Jute yarn, multiple or cabled	5%	5%	Jute carpets, ropes

HSN 5308 - Yarn of Other Vegetable Fibres; Paper Yarn

HSN Code	Description	GST 2026 Rate	Previous Rate	Fiber Type
5308 10	Coir yarn	0%	0%	Coconut coir products
5308 20	True hemp yarn	5%	5%	Industrial hemp textiles
5308 90	Other vegetable fibre yarn; paper yarn	5%	5%	Specialty & eco-friendly yarn

📐 Woven Fabrics of Vegetable Fibres (HSN 5309-5311)

HSN 5309 - Woven Fabrics of Flax

HSN Code	Description	GST 2026 Rate	Previous Rate	Fabric Type
5309 11	Flax fabrics, 85%+ flax, unbleached/bleached	5%	5%	Linen fabric base
5309 19	Other flax fabrics, 85%+ flax	5%	5%	Dyed/printed linen
5309 21-29	Flax fabrics, less than 85% flax	5%	5%	Blended linen fabrics

HSN 5310 - Woven Fabrics of Jute or Bast Fibres

HSN Code	Description	GST 2026 Rate	Previous Rate	Application
5310 10 11	Jute fabrics, 100% jute, carpet backing	5%	5%	Carpet industry base
5310 10 12	Jute hessian cloth	5%	5%	Packaging, bags
5310 10 13	Jute sacking cloth	5%	5%	Industrial packaging
5310 10 14	Jute canvas	5%	5%	Heavy-duty applications
5310 10 19	Other jute fabrics, unbleached	5%	5%	Various jute products
5310 90	Other jute fabrics (bleached, dyed, printed)	5%	5%	Value-added jute textiles

HSN 5311 - Woven Fabrics of Other Vegetable Fibres; Paper Yarn Fabrics

HSN Code	Description	GST 2026 Rate	Previous Rate	Material
5311 00	Woven fabrics of vegetable fibres; paper yarn fabrics	5%	5%	Eco-friendly textiles

🧮 GST 2026 Calculator for Chapter 53 Items

Vegetable Fibre GST Calculator - 2026 Rates

Calculate GST for jute, coir, and other natural fiber products:

Product Value (₹):

GST 2026 Rate:

GST 2026 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 2026 Compliance Points for Chapter 53

🌱 Jute Farmers & Traders

Raw jute completely exempt (0% GST)
No tax burden on agricultural produce
Supports 4+ million jute workers
West Bengal, Bihar primary beneficiaries
Eco-friendly packaging promotion

🥥 Coir Industry & Workers

Coconut coir fibers at 0% GST
Supports Kerala's traditional industry
Women's empowerment through employment
Sustainable product encouragement
Rural livelihood protection

🏭 Jute Mills & Processors

Processed jute products at 5% GST
Jute yarn and fabrics uniformly taxed
Input tax credit available
Competitive export pricing
Simplified compliance structure

♻️ Eco-Friendly Product Manufacturers

Natural fiber products at low 5% GST
Sustainable packaging materials affordable
Biodegradable alternatives promoted
Environmental goals alignment
Green manufacturing incentives

🎯 GST 2026 Sector Impact Analysis

Natural Fibre Industry Benefits

🌾 Jute Economy: 0% GST on raw jute protects farmer income in Eastern India
🥥 Coir Sector: Complete exemption boosts Kerala's coastal economy
♻️ Sustainability: Low GST encourages eco-friendly alternatives to plastic
📈 Export Growth: Competitive pricing in global natural fiber markets
🏡 Rural Development: Supports millions of traditional craft workers

Environmental & Economic Advantages

🌍 Green India: Biodegradable natural fibers replace plastic packaging
📦 Sustainable Packaging: Jute bags, coir products more affordable
🎨 Handicrafts: Traditional artisan products remain competitive
💼 Employment: Labor-intensive industries supported through low taxation
🛍️ Consumer Benefits: Eco-friendly products at reasonable prices

❓ Frequently Asked Questions (FAQs) - HSN Chapter 53

Q1: Is raw jute completely exempt from GST in 2026?

Answer: Yes, raw jute fibers that are raw or retted (HSN Code 5303 10) are completely exempt from GST (0% rate) in 2026. This exemption continues under GST 2.0 to support jute farmers primarily in West Bengal, Bihar, Assam, and Odisha.

However, once jute is processed beyond the raw/retted stage (carded, spun into yarn, or woven into fabrics), it attracts 5% GST.

Q2: What is the GST rate on coconut coir products?

Answer: Coconut coir fibers and most coir products (HSN 5305) attract 0% GST (exempt), supporting Kerala's traditional coir industry. This includes:

Coir bristle fiber, mattress fiber, short fiber
Curled or machine twisted coir fiber
Coir pith products (briquettes, grow bags, manure)
Coir yarn (HSN 5308 10) - also at 0% GST

This complete exemption protects over 500,000 coir workers and promotes eco-friendly natural fiber use.

Q3: Are jute bags and jute fabrics taxed at 5% GST?

Answer: Yes, jute yarn (HSN 5307) and woven jute fabrics (HSN 5310) including hessian cloth, sacking cloth, jute bags, and canvas attract 5% GST.

While raw jute is exempt (0%), processed jute products attract minimal 5% taxation to keep eco-friendly packaging affordable and competitive with plastic alternatives.

Q4: Can I claim Input Tax Credit (ITC) on jute and coir purchases?

Answer: Input Tax Credit availability depends on the GST rate:

Raw Jute & Coir (0% GST): No ITC available as no tax is paid
Processed Products (5% GST): ITC can be claimed on jute yarn, fabrics, and other taxable items with proper GST invoices

Registered businesses using jute/coir products for taxable supplies can claim ITC on 5% GST paid items.

Q5: What is the GST rate on flax and linen fabrics?

Answer: All flax products attract 5% GST under Chapter 53:

Raw flax (HSN 5301) - 5%
Flax yarn (HSN 5306) - 5%
Linen woven fabrics (HSN 5309) - 5%

This low rate makes premium linen textiles more accessible while supporting domestic flax processing industries.

Q6: Is industrial hemp (Cannabis sativa) legal and taxable under GST?

Answer: Yes, true hemp (Cannabis sativa L.) for industrial textile use is legal in India for licensed cultivators and attracts 5% GST (HSN 5302).

Industrial hemp fiber is used for textiles, ropes, and eco-friendly products. The low 5% GST encourages sustainable hemp cultivation and processing, distinct from narcotic cannabis which is prohibited.

Q7: Are there special GST benefits for handloom jute products?

Answer: While there's no separate GST rate specifically for handloom jute, the overall low taxation structure benefits handloom artisans:

Raw jute at 0% keeps input costs minimal
Processed jute products at only 5% maintain affordability
Handloom weavers can avail composition scheme for simplified compliance

This structure protects traditional jute handicrafts and artisan livelihoods.

Q8: What is the GST rate on coir pith compost products?

Answer: Coir pith products processed in value-added forms like briquettes, coins, neo discs, grow bags, and organic manure (HSN 5305 00 40) attract 0% GST (exempt).

This exemption promotes eco-friendly horticulture and agriculture practices, making coir-based sustainable farming inputs affordable for Indian farmers.

Q9: How has GST 2.0 (continuing in 2026) impacted natural fiber industries?

Answer: GST 2.0 maintains strong support for natural fiber industries in 2026:

No Rate Changes: Raw jute and coir continue at 0% GST
Stable Taxation: Processed products remain at 5%
Rural Protection: Zero tax burden on farmers and traditional workers
Sustainability Focus: Encourages eco-friendly alternatives to synthetic materials
Export Competitiveness: Low GST maintains global pricing advantage

Q10: Are paper yarn and paper yarn fabrics taxed under Chapter 53?

Answer: Yes, paper yarn (HSN 5308 90) and woven fabrics of paper yarn (HSN 5311 00) attract 5% GST.

Paper yarn is an innovative eco-friendly textile material made from recycled paper, and the low 5% GST encourages its use in sustainable textile manufacturing.