Yarn HSN Code

Understanding Yarn HSN Codes and GST

Yarn, the fundamental building block of textiles, comes in a vast array of materials, types, and preparations. From natural fibers like cotton and wool to synthetic filaments, each variant plays a crucial role in manufacturing everything from clothing to industrial fabrics. For businesses involved in the textile industry, accurately classifying yarn under the Harmonized System of Nomenclature (HSN) and applying the correct Goods and Services Tax (GST) rate is paramount for compliance and smooth trade.

The Yarn HSN Codes

The HSN system provides a detailed framework for classifying yarn, primarily based on its material composition and whether it’s put up for retail sale. Chapters 50 through 56 are particularly relevant for various types of yarns.

Here’s a breakdown of common HSN classifications for yarn:

• Man-made Filaments; Strip and the Like of Man-made Textile Materials (Chapter 54): This chapter extensively covers synthetic and artificial filament yarns.
  • Synthetic Filament Yarn (Other Than Sewing Thread), Not Put Up For Retail Sale, Including Synthetic Monofilament Of Less Than 67 Decitex (HSN 5402): This broad heading includes various types of synthetic yarns not meant for direct consumer retail.
    • Of Polyesters (54025200): Polyester yarns.
    • Polyvinyl Acetate Filament Yarn (54026910): Specific polyvinyl acetate yarns.
    • Polyvinyl Chloride Filament Yarn (54026920): Specific polyvinyl chloride yarns.
    • Polypropylene Filament Yarn (54026930): Polypropylene yarns.
  • Woven Fabrics of Artificial Filament Yarn (Chapter 5408): While these are fabrics, the descriptions often refer to the type of yarn used, for example, 54082120 (Bleached Woven Fabrics of Artificial Filament) and 54083110 (Unbleached Woven Fabrics of Artificial Filament).
  • Woven Fabrics of Synthetic Filament Yarn (Chapter 5407): Similarly, these cover fabrics made from synthetic yarns, like 54078290 (Synthetic Filaments, Mixed Mainly with Cotton) or 54079300 (Of Yarns of Different Colours).
• Cotton (Chapter 52): This chapter focuses on cotton yarn and fabrics.
  • Cotton Yarn (Other Than Sewing Thread), Containing 85% Or More By Weight Of Cotton, Not Put Up For Retail Sale (HSN 5205): This includes various types of cotton yarn based on decitex and whether they are single, multiple, combed, or uncombed. Examples include 52052420, 52052290, 52052320, and 52053290.
• Wool, Fine or Coarse Animal Hair; Horsehair Yarn and Woven Fabric (Chapter 51):
  • Waste Of Wool Or Of Fine Or Coarse Animal Hair, Including Yarn Waste (HSN 51031090): This covers waste products, including yarn waste, from wool processing.
• Silk Yarn and Yarn Spun From Silk Waste, Put Up For Retail Sale; Silk-Worm Gut (Chapter 50):
  • Yarn Spun From Silk Waste Containing 85 Percent Or Less By Weight Of Silk : Other (HSN 50060039): This specifically addresses silk yarns from waste.
• Wadding, Felt and Nonwovens; Special Yarns; Twine, Cordage, Ropes and Cables and Articles Thereof (Chapter 56):
  • This chapter covers “Special Yarns” and includes specific classifications for twine, cordage, ropes, and cables, which are derived from yarn. For example, high tenacity yarn of nylon used in certain textile products (HSN 56042010).
• Glass and Glassware (Chapter 70):
  • Glass Fibres (Including Glass Wool) And Articles Thereof (For Example, Yarn, Woven Fabrics) – Slivers, Rovings, Yarn And Chopped Strands : Other (HSN 70191900): This covers specialized yarns made from glass fibers.
• Essential oils and resinoids, perfumery, cosmetic or toilet preparations (Chapter 33):
  • Yarn Used To Clean Between The Teeth (Dental Floss), In Individual Retail Packages (HSN 33069000): This is a niche category for a specific type of yarn.

Understanding GST Rates for Yarn

The Goods and Services Tax (GST) rates for yarn in India vary based on the material, type, and sometimes, its intended use or form (e.g., whether it’s put up for retail sale or part of a finished product).

• 18% GST Rate:
  • Synthetic Filament Yarn (Not Put Up For Retail Sale): Most synthetic yarns, including Polyester (54025200), Polyvinyl Acetate (54026910), Polyvinyl Chloride (54026920), and Polypropylene (54026930) filament yarns, attract an 18% GST rate. This rate was effective from July 1, 2017, with rate revisions noted for October 13, 2017.
  • Glass Fibres (Including Glass Wool) and Yarn Thereof (70191900): Glass fiber yarn also falls under 18% GST.
  • Yarn Used To Clean Between The Teeth (Dental Floss) (33069000): This specialized yarn has an 18% GST rate, effective from November 15, 2017.
  • Knitting Machines, Stitch-Bonding Machines And Machines For Making Gimped Yarn (84471120): While not yarn itself, the machinery for making gimped yarn has an 18% GST.
• 5% GST Rate:
  • Woven Fabrics of Artificial Filament Yarn and Synthetic Filament Yarn: Many fabrics made from these yarns (Chapters 5407 and 5408), such as bleached fabrics (54082120), unbleached fabrics (54083110), printed rayon shirtings (54083417), and various other synthetic woven fabrics (54078290, 54079300), generally attract a 5% GST rate. This indicates a lower rate for the finished fabric compared to the raw yarn.
  • Cotton Yarn (Other Than Sewing Thread), Not Put Up For Retail Sale: Most cotton yarns (HSN 5205), including various single and multiple yarns, have a 5% GST rate.
  • Woven Fabrics of Cotton: Cotton fabrics like Saree (52094120) and Seersucker (52094150) also have a 5% GST rate.
  • Yarn Spun From Silk Waste (50060039): This silk yarn variant has a 5% GST.
• Nil GST Rate:
  • Waste Of Wool Or Of Fine Or Coarse Animal Hair, Including Yarn Waste (51031090): This specific waste product has a Nil GST rate, effective from July 1, 2017.

Most of these GST rates were implemented on July 1, 2017, with some rate revisions or clarifications occurring on October 13, 2017, and November 15, 2017. Always refer to the latest official GST notifications for the most up-to-date and specific information for any yarn type.