Why is a saree not coded as clothing?
Because it is a length of woven fabric, not a stitched garment. CBIC's GST rate FAQs say sarees fall under different headings depending on their constituent fibre, in the fabric chapters of the HSN (Harmonised System of Nomenclature, the code list that classifies goods): chapter 50 for silk, 52 for cotton, 54 for man-made filament and 55 for man-made staple fibre. Garments sit in chapters 61 and 62, and that is where the ₹2,500 rule lives.
What is the HSN code for each kind of saree?
| Saree made of | Heading | 8-digit saree items in the GST portal's HSN list |
|---|---|---|
| Silk, 85% or more by weight | 5007 (5007 20 at 6 digits) | 5007 20 10, Sarees |
| Silk, less than 85% | 5007 (5007 90) | None named |
| Cotton, 85% or more, up to 200 g/m² | 5208 | 5208 11 20, Saree (unbleached, plain weave, up to 100 g/m²); 5208 39 10, Zari bordered sarees (dyed); 5208 59 20, Sarees, handloom (printed) |
| Cotton, 85% or more, above 200 g/m² | 5209 | 5209 11 12, 5209 12 10, 5209 21 10, Saree |
| Cotton under 85%, mixed with man-made fibres | 5210 (up to 200 g/m²), 5211 (above) | 5210 11 20, Saree, among others |
| Textured polyester filament, 85% or more | 5407 | 5407 52 40 (dyed) and 5407 54 30 (printed), Polyester sarees |
| Nylon filament, 85% or more | 5407 | 5407 42 40 (dyed) and 5407 44 40 (printed), Nylon sarees |
| Viscose rayon filament, 85% or more | 5408 | 5408 22 18 (dyed) and 5408 24 18 (printed), Rayon sarees |
| Spun synthetic or viscose (staple fibre) | 5512 to 5516 | None named; use the heading for the fibre and blend |
The 6-digit subheadings inside each heading follow the finish (unbleached, bleached, dyed, of yarns of different colours, printed) and, for cotton, the weave and weight per square metre. The 8-digit items come from India's Customs Tariff; the GST portal's HSN list shows which ones exist.
Accessories have their own codes: a saree fall is in heading 5808, zari borders in 5809, and embroidery sold in the piece in 5810.
How do I choose between silk, cotton and polyester?
By weight. Under the Section XI notes to the HSN, a fabric made of two or more fibres is classified as if it were made wholly of the fibre that weighs most. A saree with a silk warp and a cotton weft is a silk saree only if the silk outweighs the cotton. For woven fabrics, metal thread such as zari counts as a textile material in that weighing.
Trade names do not decide it. Banarasi, Kanjeevaram or "art silk" describe a weave, a place or a look; the code follows the fibre on the supplier's invoice or the fabric test.
What is the GST rate on sarees?
5%: 2.5% CGST and 2.5% SGST (central and state tax) within your state, or 5% IGST (integrated tax) to another state. Notification 9/2025-Central Tax (Rate), in force from 22 Sept 2025, lists every one of these headings in its 5% schedule:
| Schedule I entry | Heading | Description |
|---|---|---|
| 326 | 5007 | Woven fabrics of silk or of silk waste |
| 334 | 5208 to 5212 | Woven fabrics of cotton |
| 342 | 5407, 5408 | Woven fabrics of manmade textile materials |
| 348 | 5512 to 5516 | Woven fabrics of manmade staple fibres |
| 371 | 5808 | Braids and trimmings, including saree fall |
| 372 | 5809 | Woven fabrics of metal thread, such as zari borders |
| 374 | 5810 | Embroidery in the piece |
None of these entries has a price condition. A ₹15,000 silk saree and a ₹600 printed cotton one are both taxed at 5%.
The 2025 reform did not move sarees: CBIC's rate FAQs gave the same 5% for silk, cotton and man-made filament sarees before it.
Why does the ₹2,500 rule not apply?
In the same notification, the per-piece line is written into the entries for chapters 61, 62 and 63 (garments and made-up textiles), and per pair for footwear. The fabric entries above have no such words. So the line that sends a ₹3,000 kurta to 18% does not touch a ₹3,000 saree.
It does touch what you sell beside the saree. A stitched blouse sold on its own is a garment, heading 6206 if woven or 6106 if knitted, taxed at 5% up to ₹2,500 a piece and 18% above. The ₹2,500 rule for clothes explains how the line is tested. A product that has been stitched into a garment is a separate classification question; settle it with your CA before charging 5% on it at any price.
How many digits do I report?
| Your turnover in the previous financial year | Digits on invoices | For a pure silk saree |
|---|---|---|
| Up to ₹5 crore | 4 digits on B2B invoices; optional on B2C | 5007 |
| Above ₹5 crore | 6 digits on every invoice | 5007 20 |
B2B means sales to buyers registered under GST, B2C sales to consumers. You may report more digits than the minimum. The HSN summary in GSTR-1 has its own digit rules.
Setting it up in Shopify
- Put each saree's code in its HS tariff code field, by fibre: 500720 for pure silk, 540752 for dyed polyester, and so on.
- Give sarees one rate, 5%, whatever the price. Keep stitched blouses and other garments separate, since their rate depends on the price.
- If your range mixes fibres, keep the fibre composition from the supplier's invoice with each product, so the code can be checked later.