Sweater HSN Code

The HSN Code for Sweaters: Your Guide to GST

Sweaters are a common and essential part of wardrobes, especially in cooler climates. For businesses involved in the manufacturing, import, export, or sale of sweaters in India, understanding the correct Harmonized System of Nomenclature (HSN) code and its associated Goods and Services Tax (GST) rate is crucial for compliance and smooth operations. This blog post delves into the specifics of sweater HSN codes and their GST implications.

The HSN Codes for Knitted Apparel

The HSN (Harmonized System of Nomenclature) is a globally recognized system for classifying goods. In India, it helps determine GST rates and facilitate international trade. Sweaters, being knitted or crocheted garments, fall under Chapter 61 of the HSN, which covers “Articles of apparel and clothing accessories, knitted or crocheted.”

Pinpointing the Sweater HSN Code and GST Rate

The specific HSN code for a sweater depends primarily on its material composition. Based on the provided data, we can pinpoint the classification for wool sweaters:

• Sweaters and Cardigans (Of Wool or Fine Animal Hair):
  • HSN Code: 61101120
  • GST Rate: 12% (Effective from July 1, 2017)
  • This code specifically covers “Jerseys, Pullovers, Cardigans, Waistcoats And Similar Articles, Knitted Or Crocheted – Of Wool Or Fine Animal Hair: Of Wool: Sweaters And Cardigans.”

It’s important to note that while the provided data focuses on wool sweaters, sweaters made from other materials like cotton or man-made fibers would also fall under HSN Chapter 61, but under different subheadings within HSN 6110. For instance, HSN 61102000 covers knitted or crocheted jerseys, pullovers, etc., of cotton, and HSN 611030 covers those made of man-made fibers.

Understanding GST Rates for Apparel: A Key Consideration

The GST rate for apparel, including sweaters, in India has a critical distinction based on the per-piece sale value:

• For garments with a sale value of Rs. 1000 or less per piece: The applicable GST rate is typically 5%.
• For garments with a sale value exceeding Rs. 1000 per piece: The applicable GST rate is typically 12%.

This means that even if a sweater falls under HSN 61101120, its final GST rate will depend on its selling price. For example, a wool sweater priced at Rs. 800 would attract 5% GST, while the same sweater priced at Rs. 1,200 would attract 12% GST. This dual-rate structure is a significant aspect of GST for the apparel industry.

Why Accurate HSN Classification Matters

Correctly identifying the HSN code for sweaters is vital for:

• GST Compliance: Ensures accurate calculation and remittance of GST.
• Invoice Generation: HSN codes are mandatory on GST invoices.
• Input Tax Credit (ITC): Proper classification helps in claiming eligible ITC on purchases.
• Customs Clearance: Essential for smooth import and export operations.

Businesses should always refer to the latest official GST notifications and HSN classification guides to ensure they are using the most up-to-date information for their specific products.