GST on Clothes & Apparel in India (2026): 5% vs 18% by Price
Readymade garments are taxed at 5% up to ₹2,500 per piece and 18% above that — the GST 2.0 reforms raised the 5% threshold from ₹1,000 to ₹2,500. Fabrics and yarn are a flat 5%. Here's the complete guide for apparel and textile sellers.
Part of: The Complete GST Guide for Small Business in India (2026)
Clothing GST hinges on one number: the per-piece price. Readymade garments are 5% up to ₹2,500 and 18% above it — and GST 2.0 (September 2025) raised that 5% threshold from the old ₹1,000 to ₹2,500, a big relief for mid-priced apparel. Fabrics and yarn sit at a flat 5%.
Quick answer: garments ≤ ₹2,500/piece = 5% GST; garments > ₹2,500/piece = 18%. Fabric = 5%.
Apparel & textile GST rates at a glance
| Item | GST rate | HSN code |
|---|---|---|
| Readymade garment ≤ ₹2,500 per piece | 5% | 61 / 62 |
| Readymade garment > ₹2,500 per piece | 18% | 61 / 62 |
| Fabric (cotton, man-made, etc.) | 5% | 50–60 |
| Yarn (natural & man-made) | 5% | 52 / 54 / 55 |
| Made-ups (bedsheets, towels) ≤ ₹2,500 | 5% | 63 |
How the per-piece test works
The threshold is per piece, not per invoice. A ₹3,000 shirt is 18% even if it's the only item on the bill; two ₹1,500 shirts are each 5% even though the invoice totals ₹3,000. Price each garment line correctly and the right rate follows.
What changed under GST 2.0
- The 5% garment threshold rose from ₹1,000 to ₹2,500 per piece — more clothing now qualifies for 5%.
- Man-made fibre (MMF) dropped from 18% to 5%, and man-made yarn from 12% to 5%, ending the old inverted-duty problem for synthetic textiles.
FAQs
What about footwear?
Footwear follows a similar price-slab logic and is classified separately (HSN 64) — confirm the current footwear threshold and rate, as it is distinct from apparel.
General information only, not tax advice; thresholds and rates can be revised. Confirm the current per-piece slabs and HSN for your products on CBIC notifications or with your CA. Last reviewed: September 2026.
Bill apparel correctly with KukBook
KukBook can apply the 5%/18% garment slab by price, store HSN per style/size, handle variants, and prepare GST returns — so a mixed bill of cheap and premium pieces is always taxed right.
