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HSN Chapter 50: Silk Classification and GST Rates in India

HSN Code & GST Rate for Silk & Woven Fabrics - Chapter 50

HSN Chapter 50 represents India's exceptional commitment to supporting the traditional silk industry and sericulture through comprehensive exemptions for raw materials and highly favorable rates for processed silk products post-September 2025 reforms. Raw silk production stages including silkworm cocoons, raw silk, and silk waste remain completely exempt, while silk yarn and woven silk fabrics benefit from the highly favorable 5% GST rate, demonstrating India's recognition of silk as both a cultural heritage and a vital rural livelihood source supporting millions of farming families across traditional silk-producing states.

Key Classification Factors for Silk & Woven Fabrics GST Rates

  • Sericulture Industry Protection: Raw silk production stages remain completely exempt
  • Rural Livelihood Support: Favorable rates supporting traditional silk farming communities
  • Cultural Heritage Recognition: Premium textile tradition receives preferential treatment
  • Value-Addition Encouragement: Processed silk products at highly competitive rates

Complete HSN Code Table: Silk & Woven Fabrics (Chapter 50)

GST Rate Product Description HSN Code Export/Import HSN Codes
Exempt Silkworm laying, cocoon 5001 50010000
Exempt Raw silk 5002 50020010, 50020020, 50020030
Exempt Silk waste 5003 50030010, 50030020, 50030030, 50030040, 50030090
5% Silk yarn 5004 50040010, 50040090
5% Silk yarn (spun silk yarn, yarn spun from silk waste) 5005 50050011, 50050012, 50050021, 50050022
5% Silk yarn (silk yarn and yarn spun from noil silk) 5006 50060011, 50060019, 50060021, 50060029, 50060031, 50060032
5% Woven fabrics of silk or of silk waste 5007 50071000, 50072010, 50072090, 50079000

🐛 Comprehensive Silk Industry Support - September 2025:

  • Sericulture Foundation Protection: Silkworm cocoons, raw silk, and silk waste remain completely exempt supporting the fundamental stages of silk production
  • Rural Livelihood Enhancement: Comprehensive support for traditional silk farming communities across Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal, and other silk-producing states
  • Cultural Heritage Preservation: Recognition of silk as India's premium textile tradition through favorable taxation structure
  • Value-Addition Incentive: Silk yarn and fabrics at highly favorable 5% GST encouraging domestic processing and weaving
  • Export Competitiveness: Low tax burden enhancing India's position in global silk markets as a quality producer
  • Traditional Weaving Support: Favorable rates supporting handloom and power loom sectors using silk materials
  • Quality Production Encouragement: Equal treatment across silk processing stages promoting quality upgradation
  • Employment Generation: Support for millions of workers across sericulture, reeling, spinning, and weaving sectors
  • Sustainable Agriculture: Mulberry cultivation and sericulture as sustainable farming alternatives receive comprehensive support

📋 GST Council Updates - September 2025

The 56th GST Council meeting reaffirmed India's commitment to the traditional silk industry through the "Silk Heritage & Rural Livelihood Preservation Initiative", maintaining comprehensive exemptions for raw silk production and highly favorable rates for processed silk products. This consistent support reflects the government's recognition of silk as both a cultural treasure and a vital source of rural employment.

Key decisions for Chapter 50 include:

  • Sericulture Protection: Complete exemptions maintained for silkworm cocoons, raw silk, and silk waste supporting the foundation of silk production
  • Processing Industry Support: Silk yarn and woven fabrics maintained at highly favorable 5% GST encouraging domestic value-addition
  • Rural Employment Priority: Comprehensive support for traditional silk farming communities and associated livelihoods
  • Cultural Heritage Recognition: Continued favorable treatment for India's premium textile tradition and craftsmanship
  • Export Competitiveness: Competitive rates supporting India's position as a global quality silk producer and exporter
  • Traditional Industry Integration: Support for both traditional handloom and modern silk processing sectors

These policies demonstrate the GST Council's deep appreciation for silk as India's heritage textile and its importance in rural livelihoods. The maintained exemptions and favorable rates particularly benefit sericulture farmers, silk reelers, handloom weavers, and the broader silk value chain while supporting India's reputation for premium silk products globally.

🐛 Expert GST for Silk & Textile Industries

Professional tax consultancy for silk producers, textile manufacturers, handloom cooperatives, and silk product exporters under the heritage-friendly GST structure

Disclaimer

The HSN codes and rates have been arranged as per the best of authors understanding and are subject to periodical updates as per the law for the time being in force. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this content, the existence of mistakes and omissions herein is not ruled out. DisyTax will not be held responsible for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document.