Cotton yarn other than khadi yarn (headings 5205 to 5207).
5%Cotton yarnNilKhadi yarn: exempt
Conditions (1)
- Khadi yarn is exempt (Notification 10/2025-CT(R), S. No. 144).
HSN code & GST rate finder
Cotton Yarn HSN Code and GST Rate
Cotton yarn is HSN 5205 to 5207 depending on cotton content and packing, at 5% GST. Khadi yarn is exempt.
- Free
- Sources linked
- Checked 9 November 2026
GST rates as of 9 November 2026, after the 22 September 2025 changes. Verify with your CA for your exact case.
3 codes. This product: Cotton yarn, HSN 5205, GST 5% or Nil.
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This product
HSN code
5205
Cotton yarn
Codes
- HSN5205Main85% or more cotton, not for retail sale
- HSN5206Under 85% cotton, not for retail sale
- HSN5207Put up for retail sale
GST rate
5%Cotton yarnNilKhadi yarn: exempt
Work out the GST
₹
Cotton yarn
- GST rate
- 5%
- CGST 2.5%
- ₹2,500
- SGST 2.5%
- ₹2,500
- Total GST
- ₹5,000
- Total with GST
- ₹1,05,000
Conditions and notes
- Khadi yarn is exempt (Notification 10/2025-CT(R), S. No. 144).
- Official description
- Cotton yarn other than khadi yarn (headings 5205 to 5207).
- Where the rate is in law
- Notification 9/2025-CT(R), Schedule I, S. No. 333
- In force since
- 22 Sep 2025
- Checked on
- 9 Nov 2026
Matches
3 codes · rates checked 9 November 2026
Yarn of manmade staple fibres (headings 5509, 5510 and 5511).
5%Conditions (2)
- A blend goes by the fibre that weighs more: mostly cotton is cotton yarn (5205 or 5206), also 5%.
- Man-made yarn moved from 12% to 5% on 22 September 2025.
Woven fabrics of manmade textile materials (5407, 5408) and of manmade staple fibres (5512 to 5516).
5%At any priceConditions (2)
- Filament yarn fabric (most Surat georgette, chiffon and crepe) is 5407. Spun yarn fabric is 5512–5515.
- Fabric rates did not change on 22 September 2025: woven fabric stays at 5%.
How to use it
Search "cotton yarn" and check the cotton share.
Use 5205, 5206 or 5207 as the table shows.
Enter the bill value to see the 5% GST.
Cotton yarn: the code and the rate
Cotton yarn not put up for retail sale is 5205 when it has 85% or more cotton and 5206 when it has less. Yarn put up for retail sale is 5207, and cotton sewing thread has its own heading, 5204.
Notification 9/2025-Central Tax (Rate) lists cotton yarn other than khadi yarn at 5% (Schedule I, S. No. 333). Khadi yarn is exempt under Notification 10/2025-Central Tax (Rate), S. No. 144.
Cotton yarn codes
| Yarn | HSN | GST |
|---|---|---|
| 85% or more cotton, not for retail sale | 5205 | 5% |
| Under 85% cotton, not for retail sale | 5206 | 5% |
| Put up for retail sale | 5207 | 5% |
| Cotton sewing thread | 5204 | 5% |
| Khadi yarn | Chapter 52 | Nil |
Related codes
- Cotton Fabric HSN Code and GST Rate: 5% or Nil
- Cotton Saree HSN Code and GST Rate: 5%
- Polyester Yarn HSN Code and GST Rate (POY, FDY, DTY): 5%
- Sewing Thread HSN Code and GST Rate: 5%
- Weaving Job Work GST Rate for Powerloom Units: 5% or 18%
Search any other product in the HSN code and GST rate finder, or put the code on a bill with the GST invoice generator.
Source: Notification 9/2025-CT(R), Schedule I, S. No. 333, in force since 22 Sep 2025. Notification 9/2025-Central Tax (Rate): GST rates on goods (CBIC); Notification 10/2025-Central Tax (Rate): exempt goods (CBIC). Checked 9 November 2026.
FAQ
Questions
What is the HSN code for cotton yarn?
5205 for yarn with 85% or more cotton, 5206 for yarn with less, and 5207 for yarn put up for retail sale.
What is the GST rate on cotton yarn?
5%. Khadi yarn is exempt.
Is polyester-cotton yarn cotton yarn?
Only if cotton weighs more. A blend that is mostly polyester is 5509, polyester spun yarn, also at 5%.
What is the GST on 500 kg of cotton yarn at ₹260 per kg?
On ₹1,30,000, GST at 5% is ₹6,500: ₹3,250 CGST and ₹3,250 SGST within the state.
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