Rayon fabric HSN Code

Understanding the HSN Code for Rayon Fabric: A Textile Business Guide

Rayon, a versatile man-made cellulosic fiber, holds a significant place in the textile industry due to its soft drape, lustrous appearance, and comfortable feel. For businesses involved in the manufacturing, trading, or distribution of rayon fabric in India, understanding its correct Harmonized System of Nomenclature (HSN) code and the associated Goods and Services Tax (GST) implications is crucial for seamless operations and compliance.

Rayon fabric falls predominantly under Chapter 54 of the HSN, specifically dedicated to “Man-made filaments; strip and the like of man-made textile materials.” This chapter broadly covers yarns and fabrics made from artificial (regenerated) fibers like rayon (viscose rayon, cuprammonium rayon, etc.).

Within Chapter 54, rayon woven fabrics are primarily categorized under HSN heading 5408: “Woven fabrics of artificial filament yarn, including woven fabrics obtained from materials of heading 5405.” This heading encompasses a wide variety of rayon fabrics, differentiated by their processing (dyed, printed), specific weave patterns, and end-use.

The data provided highlights numerous 8-digit HSN codes under 5408, all specifically for various types of rayon fabrics. These include:

• 54082211, 54082212, etc.: For dyed rayon fabrics, such as rayon crepe, jacquards, brocades, georgette, taffeta, suitings, shirtings, and sarees.
• 54083411, 54083412, etc.: For printed rayon fabrics, including rayon crepe, jacquards, brocades, georgette, taffeta, suitings, shirtings, and sarees.
• 54083211, 54083212, etc.: For other dyed rayon fabrics, similar to the above.

A significant point for businesses to note is the consistent GST rate applied to these rayon fabrics. Almost all the listed HSN codes for woven rayon fabrics, whether dyed or printed, carry a 5% GST rate. This rate has been in effect since July 1, 2017, the inception of GST in India.

It is important to distinguish rayon fabrics from rayon in its raw form (fibers or yarn) or from other man-made fabrics. While rayon filament yarn might be classified under HSN 5403 and attract a higher GST (e.g., 12% or 18%), and rayon staple fibres might fall under Chapter 55 with different rates, the finished woven fabric of rayon as detailed in the data consistently falls under HSN 5408 with a 5% GST.

For any business dealing with rayon fabric, accurately identifying the specific type (e.g., crepe, georgette, dyed, printed) and applying the correct 8-digit HSN code under 5408 is crucial for proper invoicing and GST compliance.