What Are HSN Codes and Why Do They Matter?
HSN stands for Harmonised System of Nomenclature, a globally standardised system for classifying traded products. Under the Indian GST regime, HSN codes are mandatory on all tax invoices. The code determines the applicable GST rate and is used for GSTR-1 reporting, statistical tracking, and compliance verification. For fashion brands, using the correct HSN code is essential — an incorrect code can lead to wrong tax rates, ITC mismatches, and scrutiny from tax authorities.
The number of HSN digits required on invoices depends on your turnover:
- Up to ₹5 Crore turnover: 4-digit HSN code mandatory
- Above ₹5 Crore turnover: 6-digit HSN code mandatory
HSN Code Structure for Textiles
Textile and garment HSN codes fall under Section XI of the Customs Tariff, spanning Chapters 50 to 63. The most relevant chapters for fashion brands are:
- Chapter 52: Cotton (raw cotton, cotton yarn, cotton fabrics)
- Chapter 54: Man-made filaments (polyester, nylon)
- Chapter 55: Man-made staple fibres (viscose, rayon blends)
- Chapter 58: Special woven fabrics (embroidered fabrics, lace)
- Chapter 60: Knitted or crocheted fabrics
- Chapter 61: Articles of apparel — knitted or crocheted
- Chapter 62: Articles of apparel — not knitted or crocheted (woven)
- Chapter 63: Made-up textile articles (bed linen, curtains, bags)
Key HSN Codes for Knitted Garments (Chapter 61)
Chapter 61 covers all garments made from knitted or crocheted fabrics. These are the most common codes for fashion brands:
- 6101: Men's or boys' overcoats, jackets, and similar articles — knitted. Use for knitted blazers, cardigans, and windcheaters.
- 6102: Women's or girls' overcoats, jackets, and similar articles — knitted.
- 6103: Men's or boys' suits, trousers, shorts — knitted. Includes knitted joggers and track pants.
- 6104: Women's or girls' suits, dresses, skirts, trousers — knitted. Use for knitted dresses and leggings.
- 6105: Men's or boys' shirts — knitted. This is the correct code for polo shirts and knitted casual shirts.
- 6106: Women's or girls' blouses and shirts — knitted.
- 6107: Men's or boys' underpants, pyjamas, bathrobes — knitted.
- 6108: Women's or girls' slips, pyjamas, nightdresses — knitted.
- 6109: T-shirts, singlets, tank tops — knitted. This is one of the most commonly used codes for fashion brands selling casual wear.
- 6110: Jerseys, pullovers, sweaters, cardigans, waistcoats — knitted.
- 6111: Babies' garments and clothing accessories — knitted.
- 6112: Track suits, ski suits, swimwear — knitted.
- 6113–6117: Garments coated with plastics, other garments, hosiery, gloves, and accessories — knitted.
Key HSN Codes for Woven Garments (Chapter 62)
Chapter 62 covers garments made from woven (non-knitted) fabrics, which includes most formal and ethnic wear:
- 6201: Men's or boys' overcoats, jackets — woven. Use for woven blazers and formal jackets.
- 6202: Women's or girls' overcoats, jackets — woven.
- 6203: Men's or boys' suits, trousers, shorts — woven. This covers formal trousers, jeans (denim), chinos, and woven shorts.
- 6204: Women's or girls' suits, dresses, skirts, trousers — woven. Use for salwar suits, woven dresses, and formal trousers.
- 6205: Men's or boys' shirts — woven. Covers formal shirts, casual woven shirts, and kurtas for men.
- 6206: Women's or girls' blouses and shirts — woven. Also applicable to woven kurtis.
- 6207: Men's or boys' undershirts, pyjamas — woven.
- 6208: Women's or girls' slips, pyjamas, nightdresses — woven.
- 6209: Babies' garments — woven.
- 6210–6217: Garments of specialised fabrics, other garments, accessories (ties, shawls, scarves, gloves) — woven.
Practical Examples for Common Fashion Products
Here is how specific products map to HSN codes:
- Cotton T-shirt: 6109 (knitted article — t-shirts and singlets)
- Men's formal shirt: 6205 (woven men's shirt)
- Men's kurta (cotton, woven): 6205 (classified under woven men's shirts)
- Women's kurti (knitted): 6106 (knitted women's blouse/shirt)
- Women's kurti (woven): 6206 (woven women's blouse/shirt)
- Saree (silk, woven): 6214 (shawls, scarves, and similar — woven, as sarees fall under this heading)
- Jeans (denim trouser): 6203 (woven men's trousers) or 6204 (woven women's trousers)
- Leggings (knitted): 6104 (knitted women's trousers)
- Polo shirt: 6105 (knitted men's shirt)
- Track pants: 6103 (knitted men's trousers) or 6112 (track suits)
- Dupatta/Stole: 6214 (shawls, scarves — woven)
How to Determine the Correct HSN Code
When classifying a garment, ask these questions in order:
- Is it knitted or woven? This determines whether you use Chapter 61 or Chapter 62. Check the fabric — jersey, interlock, and rib are knitted; poplin, twill, and denim are woven.
- Is it for men/boys or women/girls? Different headings apply.
- What type of garment is it? Shirts, trousers, jackets, and underwear each have separate headings.
- What is the primary fibre? The 6-digit code often specifies whether the garment is of cotton, synthetic, or other fibres.
When in doubt, refer to the Customs Tariff or consult a GST professional. Incorrect HSN classification can result in demand notices and penalties during GST audits.
HSN Summary Requirement in GSTR-1
GSTR-1 requires an HSN-wise summary of all outward supplies in Table 12. This summary must include the HSN code, description, UQC (unit quantity code), total quantity, taxable value, and tax amounts. Fashion brands with diverse product lines — say 200+ SKUs across kurtas, shirts, dresses, and accessories — must ensure every product in their catalogue has the correct HSN code assigned. An ERP system that maps HSN codes at the product level and automatically generates the HSN summary for GSTR-1 saves hours of manual work every filing period.