Rayon HSN Code

Understanding the Rayon HSN Code

Rayon, often hailed as “artificial silk” or a “regenerated cellulosic fiber,” holds a significant place in the textile industry due to its versatility, drape, and comfort. From luxurious sarees and suitings to industrial applications like tyre cord fabrics, rayon’s diverse forms require careful classification under the Harmonized System of Nomenclature (HSN) for Goods and Services Tax (GST) compliance in India.

Navigating the correct HSN code for rayon products can be intricate, as it depends on whether you are dealing with raw rayon fiber, yarn, or woven fabric, and even the specific type of rayon (e.g., viscose rayon, acetate rayon).

Rayon HSN Classifications

Rayon products primarily fall under two key Chapters in the HSN: Chapter 54 for man-made filaments (including filament yarn and woven fabrics made from them) and Chapter 55 for man-made staple fibres (including spun yarn and fabrics made from them). Some specialized rayon products might also appear in Chapter 59 for technical textiles.

1. Chapter 54: Man-Made Filaments; Strip and the like of Man-Made Textile Materials

This chapter covers rayon in its filament form, which means long, continuous strands.

• Artificial Filament Yarn (Other than Sewing Thread), Not Put For Retail Sale:
  • Of Viscose Rayon (various decitex, bright/dull): HSN codes like 54034130 (111 Decitex, Bright), 54034150 (133 Decitex, Bright), etc.
  • Of Cellulose Acetate (Acetate Rayon Filament Yarn): HSN codes like 54034210 (83 Decitex), 54034230 (133 Decitex), etc.
  • These typically attract an 18% GST rate.
• Woven Fabrics of Artificial Filament Yarn (including Woven Fabrics Obtained from Materials of Heading 5405): This is where most rayon fabrics, like those for garments, are classified.
  • Woven Fabrics Obtained from High Tenacity Yarn of Viscose Rayon: HSN Code: 54081000
  • Other Woven Fabrics, Containing 85% or More By Weight of Artificial Filament or Strip or the Like: This section is highly detailed with sub-headings based on dyeing and printing.
    • Dyed Fabrics of Rayon (e.g., Rayon Crepe, Suitings, Tafetta): HSN codes like 54082211, 54082216, 54082217, etc.
    • Printed Fabrics of Rayon (e.g., Rayon Suitings, Georgette, Tafetta, Shirtings, Sarees): HSN codes like 54082416, 54082414, 54082415, 54083417, 54083418, etc.
  • Most woven fabrics of artificial filament yarn, including those of rayon, generally have a 5% GST rate.

2. Chapter 55: Man-Made Staple Fibres

This chapter deals with rayon in its staple fiber form (short fibers) and spun yarns made from them.

• Viscose Rayon Tow: HSN Code: 55029010
  • This has an 18% GST rate.
• Other (Viscose Rayon Staple Fibres, not carded or combed): HSN Code: 550410
  • This also carries an 18% GST rate.
• Yarn (Other Than Sewing Thread) of Artificial Staple Fibres, Not Put Up For Retail Sale:
  • Acetate Rayon Spun Yarn: HSN Code: 55109020
  • Other spun yarns of viscose rayon also fall under HSN 5510.
  • These spun yarns generally attract a 12% GST rate.

3. Chapter 59: Impregnated, Coated, Covered or Laminated Textile Fabrics; Textile Articles of a kind suitable for industrial use

Certain specialized rayon products used in industrial applications are found here.

• Tyre Cord Fabric of High Tenacity Yarn of Nylon or Other Polyamides, Polyesters or Viscose Rayon:
  • HSN Code: 5902 (with sub-headings like 59029010 for rubber-impregnated).
  • These typically have a 12% GST rate.

GST Rates for Rayon Products

The GST rates for rayon vary significantly based on the stage of the product (fiber, yarn, or fabric) and its specific use.

• Raw Viscose Rayon Tow/Staple Fibres (HSN 5502, 5504): 18% GST.
• Artificial Filament Yarn (HSN 5403): 18% GST.
• Spun Yarn of Artificial Staple Fibres (HSN 5510): 12% GST.
• Woven Fabrics of Artificial Filament Yarn (HSN 5408): 5% GST.
• Tyre Cord Fabric of Viscose Rayon (HSN 5902): 12% GST.

These rates have largely been in effect since July 1, 2017, with some minor revisions for specific yarn categories effective from October 13, 2017. Businesses must correctly classify their rayon products to ensure accurate invoicing and GST returns.