Lace HSN Code

Understanding Lace HSN Codes and GST Rates

Lace, with its delicate patterns and versatile applications, holds a significant place in the textile and fashion industry. From apparel to home furnishings, understanding the correct HSN (Harmonized System of Nomenclature) code for lace is essential for businesses to ensure accurate GST (Goods and Services Tax) compliance in India.

The provided data, while mentioning “Lace,” primarily focuses on the machinery used to make lace under Chapter 84: Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof. However, to accurately classify the lace itself, we need to look at its direct product category.

Classifying Lace: More Than Just the Machine

While the machinery for making lace (HSN 8447) falls under mechanical appliances and consistently attracts an 18% GST rate, the finished lace product is classified differently.

Lace, as a textile material, is primarily categorized under Chapter 58: Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery. This chapter is specifically designed to encompass a variety of intricate textile products, including lace in various forms.

Within Chapter 58, the relevant heading for lace is 5804: Tulles and other net fabrics, not including woven, knitted or crocheted fabrics; lace in the piece, in strips or in motifs, other than fabrics of headings 6002 to 6006.

Here’s a breakdown of specific lace types and their corresponding HSN codes and GST rates:

• Mechanically Made Lace:
  • 58042100: “Mechanically Made Lace: Of Man-Made Fibres” generally attracts a 5% GST rate (though some sources indicate 12%, it’s crucial to confirm the latest official rates).
  • 580429: “Mechanically Made Lace: Of Other Textile Materials” (e.g., cotton) typically also has a 5% GST rate (again, with some variations noted, confirming the latest official rates is vital).
• Hand-Made Lace:
  • 58043000: “Hand-Made Lace” is also classified under HSN 5804 and generally attracts a 5% GST rate.

It is important to note that while some references in older data or certain platforms might show 12% for some types of lace under 5804, the prevailing and commonly cited GST rate for both mechanically made and handmade lace in the piece, in strips, or in motifs is 5%. This lower rate often applies to essential textile items.