Cotton bag HSN Code

GST rates and HSN code for Cotton bag.

ChapterDescriptionHSN CodeRate (%)CESS (%)Effective DateRate Revision
Other made up textile articles; sets; worn clothing and worn textile articles; ragsSacks And Bags, Of A Kind Used For The Packing Of Goods Of Jute Or Of Other Textile Bast Fibres Of Heading 5303: Jute Bagging For Raw Cotton6305101018%01/01/2020
Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Cotton6305200018%01/01/2020
Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Jute Or Of Other Textile Bast Fibres Of Heading 5303: Jute Sacking Bags6305104018%01/01/2020
Man-made staple fibresWoven Fabrics Of Synthetic Staple Fibres, Containing Less Than 85% By Weight Of Such Fibres, Mixed Mainly Or Solely With Cotton, Of A Weight Exceeding 170 G/M2 – Printed 3-Thread Or 4-Thread Twill, Including Cross Twill, Of Polyester Staple Fibres551442005%01/07/2017
<strong>Cotton</strong>Woven Fabrics Of Cotton, Containing 85% Or More By Weight Of Cotton, Weighing More Than 200 G/M2 – Bleached : Plain Weave :Dhoti520921605%01/07/2017
Woven Fabrics Of Cotton, Containing 85% Or More By Weight Of Cotton, Weighing More Than 200 G/M2- – Of Yarns Of Different Colours : Plain Weave :Saree520941205%01/07/2017
Cotton Yarn (Other Than Sewing Thread), Containing 85% Or More By Weight Of Cotton, Not Put Up For Retail Sale – Single Yarn Of Combed Fibres : Measuring Less Than 192.31 Decitex But Not Less Than 125 Decitex (Exceeding 52 Metric Number But Not Exceeding520524205%01/07/2017
Woven Fabrics Of Cotton, Containing Less Than 85% By Weight Of Cotton, Mixed Mainly Or Solely With Man-Made Fibres, Weighing More Than 200 G/M2 – Unbleached :3-Thread Or 4-Thread Twill,` Including Cross Twill :Damask521112305%01/07/2017
Woven Fabrics Of Cotton, Containing Less Than 85% By Weight Of Cotton, Mixed Mainly Or Solely With Man-Made Fibres, Weighing Not More Than 200 G/M2- Bleached :Other Fabrics :Dhoti And Saree, Zari Bordered521029105%01/07/2017
Woven Fabrics Of Cotton, Containing 85% Or More By Weight Of Cotton, Weighing Not More Than 200 G/M2- Printed : Plain Weave, Weighing More Than 100 G/M2 :Lungi520852105%01/07/2017
Cotton Yarn (Other Than Sewing Thread), Containing 85% Or More By Weight Of Cotton, Not Put Up For Retail Sale – Single Yarn Of Combed Fibres : Measuring Less Than 714.29 Decitex But Not Less Than 232.56 Decitex (Exceeding 14 Metric Number But Not Exceedi520522905%01/07/2017
Cotton Yarn (Other Than Sewing Thread), Containing 85% Or More By Weight Of Cotton, Not Put Up For Retail Sale – Single Yarn Of Combed Fibres : Measuring Less Than 232.56 Decitex But Not Less Than 192.31 Decitex (Exceeding 43 Metric Number But Not Exceedi520523205%01/07/2017
Cotton Yarn (Other Than Sewing Thread), Containing 85% Or More By Weight Of Cotton, Not Put Up For Retail Sale – Multiple (Folded) Or Cabled Yarn, Of Uncombed Fibres : Measuring Per Single Yarn Less Than 714.29 Decitex But Not Less Than 232.56 Decitex (Ex520532905%01/07/2017
Woven Fabrics Of Cotton, Containing Less Than 85% By Weight Of Cotton, Mixed Mainly Or Solely With Man-Made Fibres, Weighing More Than 200 G/M2 – Bleached :Other Fabrics :Other521129905%01/07/2017
Woven Fabrics Of Cotton, Containing Less Than 85% By Weight Of Cotton, Mixed Mainly Or Solely With Man-Made Fibres, Weighing More Than 200 G/M2 – Printed : 3-Thread Or 4-Thread Twill, Including Cross Twill :Other521152905%01/07/2017
Woven Fabrics Of Cotton, Containing 85% Or More By Weight Of Cotton, Weighing More Than 200 G/M2- – Of Yarns Of Different Colours : Plain Weave :Seersucker520941505%01/07/2017
Cotton, Not Carded Or Combed5201005%01/07/2017
Woven Fabrics Of Cotton, Containing 85% Or More By Weight Of Cotton, Weighing Not More Than 200 G/M2- – Bleached : Plain Weave, Weighing Not More Than 100 G/M2 : Voils (Excluding Leno Fabrics)520821805%01/07/2017
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereofKnitting Machines, Stitch-Bonding Machines And Machines For Making Gimped Yarn, Tulle, Lace, Embroidery, Trimmings, Braid Or Net And Machines For Tufting – Circular Knitting Machines – With Cylinder Diameter Not Exceeding 165 Mm: Cotton Hosiery Machines8447112018%01/07/2017
Man-made filaments; strip and the like of man-made textile materialsWoven Fabrics Of Synthetic Filament Yarn, Including Woven Fabrics Obtained From Materials Of Heading 5404 Other Woven Fabrics, Containing Less Than 85% By Weight Of Synthetic Filaments, Mixed Mainly Or Solely With Cotton : Dyed :Other540782905%01/07/2017

Understanding the HSN Code for Cotton Bags and Their GST

Cotton bags are gaining immense popularity as an eco-friendly alternative to plastic, serving a multitude of purposes from grocery shopping to fashionable accessories. For businesses involved in the manufacturing, trading, or import/export of cotton bags in India, a clear understanding of their Harmonized System of Nomenclature (HSN) code and the applicable Goods and Services Tax (GST) rate is crucial for compliance and smooth operations. Let’s delve into the specifics.

Navigating Textile Articles in the HSN

The HSN (Harmonized System of Nomenclature) is an internationally recognized product classification system. In India, it’s integral for determining GST rates. Cotton bags, being “made up textile articles,” primarily fall under Chapter 63 of the HSN, which covers “Other made up textile articles; sets; worn clothing and worn textile articles; rags.”

The HSN Code for Cotton Bags and Their GST Rate

The provided data directly addresses cotton bags used for packing goods:

  • Sacks And Bags, Of A Kind Used For The Packing Of Goods Of Cotton:
    • HSN Code: 63052000
    • GST Rate: 18%
    • Effective Date: January 1, 2020

This HSN code (63052000) specifically identifies cotton bags designed for packing. It’s important to differentiate this from the raw cotton material or cotton fabrics, which fall under Chapter 52 and typically have a 5% GST rate, as seen in other entries in the provided data (e.g., woven cotton fabrics, cotton yarn). The higher rate for the finished bag reflects its status as a manufactured article for specific use.

The data also lists:

  • Jute Bagging For Raw Cotton:
    • HSN Code: 63051010
    • GST Rate: 18%
    • Effective Date: January 1, 2020
    • This is distinct, referring to bags for raw cotton, but made of jute.

Why Accurate HSN Classification is Crucial for Cotton Bags

For any business dealing with cotton bags, precise HSN classification is vital for several reasons:

  • GST Compliance: It ensures you charge and remit the correct GST, avoiding penalties and legal issues. The difference in rates between raw materials (like cotton fabric) and finished goods (like cotton bags) is significant.
  • Accurate Invoicing: HSN codes are a mandatory detail on all GST invoices issued by registered businesses, fostering transparency.
  • Input Tax Credit (ITC): Correct classification facilitates the seamless claiming of ITC on inputs (like cotton fabric, stitching thread, etc.) used in the manufacturing of cotton bags.
  • Trade Facilitation: Standardized HSN codes are necessary for smooth customs clearance during import and export operations.

Businesses should always refer to the latest official GST notifications and HSN classification guides or seek professional advice to ensure their practices align with current regulations, especially as sustainable products become more prevalent and their tax classifications evolve.

FAQs

What HSN chapter covers finished cotton bags?

Finished cotton bags typically fall under Chapter 63 of the HSN.

What is the specific HSN code for cotton bags used for packing goods?

The specific HSN code for cotton bags used for packing goods is 63052000.

When did the 18% GST rate for cotton bags become effective?

The 18% GST rate for cotton bags became effective on January 1, 2020.

What is the GST rate for cotton bags?

The GST rate for cotton bags (HSN 63052000) is 18%.

If I buy cotton fabric at 5% GST and make bags, what GST do I charge on the bags?

You would charge 18% GST on the finished cotton bags (HSN 63052000) and can claim Input Tax Credit on the 5% GST paid on the fabric.

Why is it important for businesses to use the correct HSN code for cotton bags?

It’s crucial for accurate GST calculation, correct invoicing, and eligible Input Tax Credit claims.

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