Readymade Dress HSN Code

Understanding Readymade Dress HSN Codes

The Indian apparel industry is a vibrant and essential sector, catering to a diverse population with a constant demand for readymade clothing. For businesses operating in this space, from small boutiques to large retail chains, correctly classifying their readymade dresses under the Harmonized System of Nomenclature (HSN) is crucial for seamless Goods and Services Tax (GST) compliance. The “Readymade Dress HSN Code” isn’t a single universal number; instead, it depends on several factors, primarily the garment’s type, material, and most importantly, its sale value.

Let’s unravel the complexities of HSN codes for readymade dresses in India.

The Readymade Dress HSN Codes: Chapter 61, 62, and 63

Readymade garments primarily fall under two main chapters of the HSN:

• Chapter 61: Articles of Apparel and Clothing Accessories, Knitted or Crocheted This chapter covers garments that are knitted or crocheted, which includes a wide range of everyday wear like T-shirts, sweaters, hosiery, and many types of dresses made from knitted fabrics.
• Chapter 62: Articles of Apparel and Clothing Accessories, Not Knitted or Crocheted This chapter covers garments made from woven fabrics, which encompasses a vast array of readymade dresses, suits, shirts, trousers, and other tailored clothing.
• Chapter 63: Other Made Up Textile Articles; Sets; Worn Clothing and Worn Textile Articles; Rags While Chapter 63 predominantly deals with made-up textile articles like bed linen, table linen, and used clothing, it also contains a relevant category for “Other Made Up Articles, Including Dress Patterns.” This general category is significant, especially when a specific garment doesn’t fit neatly into Chapters 61 or 62, or when dealing with dress materials.

The Critical Factor: Sale Value and GST Rates

The most significant determinant of the GST rate for readymade dresses is their sale value:

• **Readymade Garments (both knitted/crocheted and not knitted/crocheted) with a sale value not exceeding Rs. 1000 per piece generally attract a 5% GST rate. This has been consistently applied since July 1, 2017.
• **Readymade Garments (both knitted/crocheted and not knitted/crocheted) with a sale value exceeding Rs. 1000 per piece typically attract a 12% GST rate. This rate also came into effect from July 1, 2017.

Specific HSN Codes and Examples from the Data

While the provided data has some entries that might seem misplaced (like “Cereals” under a “Readymade Dress” context, which is likely an error or a misinterpretation of a broader data set), let’s focus on the relevant entries from Chapter 63, which, in some instances, can pertain to certain aspects of “Readymade Dress” or “Dress Patterns.”

• Other Made Up Articles, Including Dress Patterns:
  • HSN 6307 (Sale Value Not Exceeding Rs. 1000 Per Piece): This general heading could encompass certain dress patterns or simple made-up articles related to dresses, especially if their value is below Rs. 1000. It attracts a 5% GST rate (effective from July 1, 2017).
  • HSN 6307 (Sale Value Exceeding Rs. 1000 Per Piece): Similar to the above, for items exceeding this value, the GST rate is 12% (effective from November 15, 2017, revised from July 1, 2017).
  • HSN 63079090 (Other Made Up Articles, Other): This is a broad “other” category that captures made-up textile articles not specifically listed. If a particular readymade dress or dress pattern falls here, it attracts a 12% GST rate (effective from November 15, 2017, revised from July 1, 2017).
  • Specific sub-categories under HSN 6307 also highlight materials for dress patterns:
    • 63079011 (Dress Materials Hand Printed: Of Cotton): 12% GST.
    • 63079012 (Dress Materials Hand Printed: Of Silk): 12% GST.
    • 63079013 (Dress Materials Hand Printed: Of Man-Made Fibres): 12% GST.
    • 63079019 (Dress Materials Hand Printed: Other): 12% GST. These indicate that even unstitched dress materials, often used to create readymade dresses, have specific HSNs and a 12% GST rate.

Crucial Clarification: It is paramount to understand that while HSN 6307 covers “Other Made Up Articles, Including Dress Patterns,” the primary classification for finished readymade garments (dresses, shirts, trousers, etc.) typically falls under Chapter 61 (for knitted/crocheted) and Chapter 62 (for not knitted/crocheted). The sale value remains the key differentiator for GST rates in these chapters as well.

Why Correct HSN for Readymade Dresses Matters

• Accurate GST Collection and Payment: Proper HSN classification ensures businesses charge and pay the correct GST, avoiding penalties and legal issues.
• Smooth Business Operations: Correct HSN codes simplify invoicing, inventory management, and tax return filing.
• Facilitating Trade: Standardized HSN codes aid in easier customs clearance for imported and exported readymade garments.