T-Shirt HSN Code Explained: Classification, Tax Rates, and Compliance

In the Blog Post

T-shirts are a critical category of the business concerned with the manufacturing, exporting, and importing of garments. The definition of HSN is the Harmonized System of Nomenclature, a universal mechanism for coding merchandise to facilitate global trade. The HSN system is applied in India under the GST to classify products and charge the right tax rates.

The HSN code falls under Chapter 61 for T-shirts in the Customs Tariff, which concerns Articles of apparel and Clothing accessories, Knitted or Crocheted. This provides uniformity in taxation, international trade reporting, and adherence to international trade standards.

Classification of T-Shirts under HSN Code

It is important to properly classify T-shirts under the HSN Code since it defines the amount of tax or duty. The HSN classification of T-shirts is found under –

HSN Code 6109 – This includes T-shirts and singlets, along with other vests knitted or crocheted of cotton or man-made fibre.
HSN Code 6205 – This refers to shirts worn by men or boys, but does not include knitted T-shirts covered by 6109.

To the exporters and importers, it is important to be aware of the T-shirt classification to prevent any dispute in the process of clearing the goods and to ensure that the transportation of the product remains unchallenged in the process of crossing the borders.

Tax Rates Applicable to T-Shirts

The GST rate on T-shirts depends on the sale value of the garment. The government uses differentiated rates to make it affordable and simultaneously generate revenue. Here’s a breakdown –

5 per cent GST – This is paid on T-shirts whose retail price does not exceed Rs. 1,000 each.
12 percent GST – Applicable on T-shirts with a sale value above Rs. 1,000 per piece.

Such tiers of taxation will be used to make sure that budget-friendly T-shirts are affordable to mass consumers, whereas the premium products will contribute to tax revenues. To businesses, it is important to use the appropriate T-shirt HSN Code and GST rate in order to comply.

HSN Code	Description	GST Rate
61091000	T-shirts, singlets, and other vests, knitted or crocheted: of cotton	5%
61099010	T-shirts, singlets and other vests, knitted or crocheted, of other textile materials: of synthetic fibres	5%
61099020	T-shirts, singlets, and other vests, knitted or crocheted, of other textile materials: of artificial fibers	5%
61099030	T-shirts, singlets, and other vests, knitted or crocheted, of other textile materials: of silk	5%
61099040	T-shirts, singlets, and other vests, knitted or crocheted, of other textile materials: of wool or fine animal hair	5%
61099090	T-shirts, singlets, and other vests, knitted or crocheted, of other textile materials: other	5%

Importance of Correct HSN Code Usage

Knowing the right T-shirt HSN Code is more important than taxation. It has broader implications, including –

Accurate GST reporting – Misclassification may be subject to notices or fines.
Smooth customs clearance – Accurate codes eliminate delays in international shipments.
Proper input tax credit (ITC) – It is only under the classification of goods that businesses can claim ITC.
Avoiding disputes – HSN code is documented well and minimizes conflict with tax authorities or logisticians.

Therefore, proper classification not only protects both compliance and working capital of the exporters but also domestic traders.

Compliance Requirements for T-Shirt Exporters and Importers

The HSN Code system has compliance regulations to adhere to by exporters and importers of T-shirts. These include –

Invoice accuracy – All the invoices should indicate the right code of HSN as well as the product description.
GST returns – T-shirts need to be recorded as HSN 6109 in monthly and annual GST returns.
Customs statements -Shipments abroad must be recorded using HSN codes on shipping and customs statements.
Audit preparedness – Companies will need to keep good classification records to withstand an audit by the GST or customs department.

Non-compliance will result in delays, fines, or even rejection of export consignments in case of a minor T-shirt classification mistake.

Global Perspective on T-Shirt HSN Codes

T-shirt HSN Code is not only an Indian requirement but a worldwide standard as well. The World Customs Organisation (WCO) controls the Harmonised System, which guarantees uniformity in trade. With the correct code, exporters can –

Enter new markets – International buyers have confidence in invoices and documents because of the uniform classification.
Facilitate trade negotiations – Coding helps in the uniform understanding of goods among countries.
Minimise tariff uncertainty – A large number of countries adopt the same HS codes in calculating import duties.

As an illustration, the T-shirts in the United States and Europe fall under the same HS Code of 6109, which demonstrates the need for global consistency.

Common Mistakes in T-Shirt HSN Code Usage

Most MSMEs and exporters commit mistakes when using the HSN code of T-shirts. Common mistakes include –

Rather than the T-shirt code (6109), they used a shirt code (6205).
Improper application of the wrong GST slab with the wrong sale value.
Leaving the code out of shipping bills or GST invoices.
Failure to implement modifications in the government-issued HSN amendments.

These errors will result in the avoidance of fines by businesses and the safeguarding of working capital.

Simplifying Trade with the Right HSN Code

T-shirt HSN Code is a central factor in setting taxation rates, compliance with GST, and simplifying international trade. To the exporters and importers, proper classification under HSN 6109 will not only eliminate disagreements but also facilitate the operations in both the local and international markets. With powerful financial solutions, companies are able to concentrate on expanding exports rather than being concerned about tax or compliance mistakes.

When exporters consider the compliance of T-shirt HSN codes, the issue of financing remains one of the factors that slows down their growth. This is where Credlix comes in. Credlix, being a popular export funding platform, assists MSMEs in invoice discounting, export factoring, and working capital facilities. By accelerating payments, exporters will be able to control taxes, pay suppliers, and compliance costs, without waiting for months for international purchasers to clear their invoices.