52042040 is the designated HSN classification for Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre, categorized under Chapter 52 – Cotton in the GST tariff structure. Businesses involved in trading, manufacturing, or importing Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre must apply this code correctly on invoices and tax returns. The applicable tax rates include CGST at 2.50%, SGST/UTGST at 2.50% for local transactions, and IGST at 5.00% for interstate supplies. Quantities are measured in kg. for billing purposes.
HSN Codes under Chapter 52 – Cotton
Below are related HSN codes from Chapter 52 – Cotton for your reference:
| Chapter | HSN Code | Description | CGST | SGST/UTGST | IGST |
|---|---|---|---|---|---|
| Cotton... | 52010011 | Cotton, Not Carded Or Combed Cotton, Not Carded Or... | 2.50% | 2.50% | 5.00% |
| Cotton... | 52010012 | Cotton, Not Carded Or Combed Cotton, Not Carded Or... | 2.50% | 2.50% | 5.00% |
| Cotton... | 52010013 | Cotton, Not Carded Or Combed Cotton, Not Carded Or... | 2.50% | 2.50% | 5.00% |
| Cotton... | 52010014 | Cotton, Not Carded Or Combed Cotton, Not Carded Or... | 2.50% | 2.50% | 5.00% |
| Cotton... | 52010015 | Cotton, Not Carded Or Combed Cotton, Not Carded Or... | 2.50% | 2.50% | 5.00% |
| Cotton... | 52010019 | Cotton, Not Carded Or Combed Cotton, Not Carded Or... | 2.50% | 2.50% | 5.00% |
| Cotton... | 52010020 | Cotton, Not Carded Or Combed Cotton, Not Carded Or... | 2.50% | 2.50% | 5.00% |
| Cotton... | 52010021 | Cotton, Not Carded Or Combed - Cotton, Not Carded ... | 2.50% | 2.50% | 5.00% |
| Cotton... | 52010022 | Cotton, Not Carded Or Combed - Cotton, Not Carded ... | 2.50% | 2.50% | 5.00% |
| Cotton... | 52010023 | Cotton, Not Carded Or Combed - Cotton, Not Carded ... | 2.50% | 2.50% | 5.00% |
GST Rates for HSN 52042040
The tax structure for Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre under HSN Code 52042040 follows a dual taxation model. CGST is levied at 2.50% and SGST/UTGST at 2.50% for intrastate sales. Interstate transactions attract IGST at 5.00%. All invoices must record quantities in kg. as the standard measurement for goods under Chapter 52 – Cotton.
Who Should Use HSN Code 52042040?
All businesses supplying Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre are obligated to use HSN 52042040 on tax invoices. From producers to retailers within Cotton, Chapter 52 classification ensures uniform tax treatment. This requirement applies regardless of turnover or business model.
Business Registration Requirements
Starting a business involving Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre? GST registration is mandatory for collecting and remitting taxes on HSN 52042040 goods. Companies planning international trade within Cotton must obtain an Import Export Code. Exporters need AD Code registration for receiving foreign payments. New entrepreneurs should complete company registration before pursuing trade-specific approvals.
Why Correct Classification Matters
Correct HSN Code 52042040 application for Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre ensures smooth input credit utilization and assessment processes. Track 2.50%, 2.50%, and 5.00% rate changes for Chapter 52 – Cotton through official notifications for continuous compliance.
Frequently Asked Questions (FAQs)
How many digits of HSN Code 52042040 should I mention on invoices?
The number of HSN digits depends on your annual turnover. Businesses with turnover above Rs 5 crore must mention 6 digits, while others may use 4 digits. Always use the complete HSN 52042040 for accurate classification of Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre.
Can I claim input tax credit on Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre purchases?
Yes, registered businesses can claim input tax credit on Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre purchases made under HSN 52042040. Ensure your supplier mentions correct HSN code and GST rates (2.50%, 2.50%) on the invoice.
What is the difference between CGST and IGST for HSN 52042040?
CGST at 2.50% plus SGST/UTGST at 2.50% applies when Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre is sold within the same state. IGST at 5.00% is charged when goods move across state borders or are imported.
Is Import Export Code necessary for trading Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre domestically?
No, Import Export Code is only required if you plan to import or export Cotton Sewing Thread, Whether Or Not Put Up For Retail Sale - Put Up For Retail Sale : Cotton Sewing Thread, Not Containing Any Synthetic Staple Fibre internationally. For domestic trade within Cotton, GST registration is sufficient.
