Tops HSN Code

Understanding “Tops”: HSN Codes and GST in the Textile Industry

The term “tops” in the context of HSN codes doesn’t refer to the apparel item worn on the upper body. Instead, it refers to a specific semi-processed form of textile fibers, crucial in the spinning process to create yarn. For businesses involved in the textile industry, particularly those dealing with raw materials, understanding the correct HSN (Harmonized System of Nomenclature) codes and associated GST (Goods and Services Tax) rates for these “tops” is vital for compliance.

The HSN Code for Textile “Tops”

The HSN codes for “tops” are found primarily within chapters related to textile raw materials, specifically those covering wool and man-made staple fibers. The classification largely depends on the fiber type.

1. Wool Tops (Chapter 51: Wool, fine or coarse animal hair; horsehair yarn and woven fabric)

This category deals with wool and other animal hairs that have been “carded or combed” into a continuous strand, ready for spinning.

• 51052100: “Wool Tops And Other Combed Wool : Combed Wool In Fragments.” This refers to combed wool that might be in smaller, broken pieces.
• 51052910: “Wool Tops And Other Combed Wool : Other : Wool Tops.” This is the general classification for processed wool tops.
• 51052990: “Wool And Fine Or Coarse Animal Hair, Carded Or Combed (Including Combed Wool In Fragments) – Wool Tops And Other Combed Wool : Other : Other.” This serves as a residual category for other wool tops.
  • All these wool tops (HSN 51052100, 51052910, 51052990) are subject to a 5% GST rate, effective from July 1, 2017.

2. Man-Made Staple Fibres Tops (Chapter 55: Man-made staple fibres)

This category covers synthetic and artificial staple fibers that have been “carded, combed, or otherwise processed for spinning” into tops.

• Synthetic Staple Fibres:
  • 55069010: “Synthetic Staple Fibres, Carded Combed Or Otherwise Processed For Spinning – Other : Polypropylene Tops.”
  • This type of top attracts an 18% GST rate, effective from July 1, 2017.
• Artificial Staple Fibres:
  • 55070010: “Artificial Staple Fibres, Carded, Combed Or Otherwise Processed For Spinning : Acetate Rayon Tops.”
  • 55070020: “Artificial Staple Fibres, Carded, Combed Or Otherwise Processed For Spinning : Viscose Tops.”
  • 55070030: “Artificial Staple Fibres, Carded, Combed Or Otherwise Processed For Spinning : Polynosic Tops.”
  • 55070040: “Artificial Staple Fibres, Carded, Combed Or Otherwise Processed For Spinning : High Wet Modulus Tops.”
  • All these artificial staple fiber tops (HSN 55070010, 55070020, 55070030, 55070040) are subject to an 18% GST rate, effective from July 1, 2017.

Understanding the GST Rates for Textile “Tops”

The GST rates for textile “tops” vary significantly based on their origin:

• 5% GST: Applies to Wool Tops.
• 18% GST: Applies to Man-Made Staple Fibre Tops (both synthetic like polypropylene and artificial like viscose, acetate rayon, etc.).

These rates have been consistently applied since the initial implementation of GST on July 1, 2017.