Chapter 52 of the GST framework covers Cotton, and HSN Code 52071000 specifically identifies Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton for taxation purposes. This classification is mandatory for all businesses engaged in the supply of Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton. Tax rates applicable include CGST at 0.025, SGST/UTGST at 0.025, and IGST at 0.05 for interstate movements. The standard unit of measurement is kg..
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 52071000
The tax structure for Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton under HSN Code 52071000 follows a dual taxation model. CGST is levied at 0.025 and SGST/UTGST at 0.025 for intrastate sales. Interstate transactions attract IGST at 0.05. All invoices must record quantities in kg. as the standard measurement for goods under Chapter 52 – Cotton.
Who Should Use HSN Code 52071000?
Every entity transacting in Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton must quote HSN Code 52071000 on invoices. This includes traders, distributors, and e-commerce sellers operating under Cotton. Chapter 52 mandates this classification for accurate tax computation across the supply chain.
Business Registration Requirements
Looking to deal in Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton? GST registration is your first compliance requirement for HSN 52071000 goods. International traders in Cotton products must obtain an Import Export Code. AD Code registration facilitates export payment processing. Company registration should precede all other business approvals.
Why Correct Classification Matters
Correct HSN Code 52071000 application for Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton ensures smooth input credit utilization and assessment processes. Track 0.025, 0.025, and 0.05 rate changes for Chapter 52 – Cotton through official notifications for continuous compliance.
Frequently Asked Questions (FAQs)
How many digits of HSN Code 52071000 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 52071000 for accurate classification of Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton.
Can I claim input tax credit on Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton purchases?
Yes, registered businesses can claim input tax credit on Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton purchases made under HSN 52071000. Ensure your supplier mentions correct HSN code and GST rates (0.025, 0.025) on the invoice.
What is the difference between CGST and IGST for HSN 52071000?
CGST at 0.025 plus SGST/UTGST at 0.025 applies when Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton is sold within the same state. IGST at 0.05 is charged when goods move across state borders or are imported.
Is Import Export Code necessary for trading Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton domestically?
No, Import Export Code is only required if you plan to import or export Cotton Yarn (Other Than Sewing Thread) Put Up For Retail Sale Containing 85% Or More By Weight Of Cotton internationally. For domestic trade within Cotton, GST registration is sufficient.
