{"id":83,"date":"2026-05-21T05:09:49","date_gmt":"2026-05-21T05:09:49","guid":{"rendered":"https:\/\/billacco.com\/blog\/?p=83"},"modified":"2026-05-05T05:10:42","modified_gmt":"2026-05-05T05:10:42","slug":"gst-on-embroidery-work-in-india-rates-hsn-codes","status":"publish","type":"post","link":"https:\/\/billacco.com\/blog\/gst-on-embroidery-work-in-india-rates-hsn-codes\/","title":{"rendered":"GST on Embroidery Work in India: Rates & HSN Codes Explained"},"content":{"rendered":"
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If you run an embroidery unit in India \u2014 whether you do hand embroidery, machine embroidery, or computer-controlled embroidery \u2014 understanding the correct GST rates and HSN codes for your work is essential. Getting this wrong can lead to charging the wrong tax rate to clients, claiming the wrong ITC, and receiving notices from the GST department. Yet many embroidery business owners in India are unclear about exactly which rate applies to their specific type of work.<\/p>\n

In this guide, we explain GST on embroidery work in India clearly and in simple words. We cover the correct HSN codes for different types of embroidery, the applicable GST rates, the difference between job work and direct sale, and the compliance steps you need to follow. By the end, you will know exactly how to invoice your embroidery work and stay fully compliant with GST law in 2026.<\/p>\n<\/section>\n

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HSN Codes for Embroidery in India<\/h2>\n

HSN (Harmonised System of Nomenclature) codes classify goods under GST. For embroidery, the most important HSN codes fall under Chapter 58 of the GST tariff schedule, which covers special woven fabrics, tufted textile fabrics, lace, tapestries, trimmings, and embroidery.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HSN Code<\/th>\nDescription<\/th>\nGST Rate<\/th>\n<\/tr>\n<\/thead>\n
5810<\/td>\nEmbroidery in the piece, in strips or in motifs<\/td>\n12%<\/td>\n<\/tr>\n
5810 10<\/td>\nEmbroidery without visible ground<\/td>\n12%<\/td>\n<\/tr>\n
5810 91<\/td>\nEmbroidery of cotton<\/td>\n12%<\/td>\n<\/tr>\n
5810 92<\/td>\nEmbroidery of man-made fibres<\/td>\n12%<\/td>\n<\/tr>\n
5810 99<\/td>\nEmbroidery of other textile materials<\/td>\n12%<\/td>\n<\/tr>\n
9988<\/td>\nJob work services for textiles and textile products (Chapters 50\u201363)<\/td>\n5%<\/td>\n<\/tr>\n
9988 (other)<\/td>\nJob work services \u2014 other manufacturing (non-textile)<\/td>\n12%<\/td>\n<\/tr>\n
6217<\/td>\nMade-up clothing accessories with embroidery<\/td>\n5% or 12%*<\/td>\n<\/tr>\n
6302<\/td>\nBed linen, table linen, toilet \/ kitchen linen with embroidery<\/td>\n5% or 12%*<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

*Note: For readymade garments and made-up articles, GST is 5% if the retail sale price is \u20b91,000 or less, and 12% if the retail sale price exceeds \u20b91,000.<\/p>\n<\/section>\n

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Create GST-compliant embroidery invoices with the right HSN codes<\/h3>\n

BillAcco stores your HSN codes and GST rates once, then applies them automatically on every invoice. No more rate confusion or manual calculations.<\/p>\n

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The Most Important GST Distinction for Embroidery Units<\/h2>\n

The single most important GST distinction every embroidery business owner must understand is this: are you doing job work or are you selling embroidered goods?<\/strong> This distinction determines which HSN code and GST rate apply to your invoice.<\/p>\n

Job Work (HSN 9988) \u2014 5% GST<\/h3>\n

Job work means you are performing embroidery work on fabric or garments that belong to your customer (called the “principal”). The principal sends you grey fabric or cut pieces. You do the embroidery and return the embroidered fabric or pieces back to them. In this case, the fabric never becomes your property \u2014 you are providing a service on someone else’s goods. This is job work under Section 2(68) of the CGST Act, and it attracts GST at 5% under HSN code 9988 for textile job work. This is the most common arrangement for embroidery units working with garment manufacturers, textile exporters, and readymade garment factories.<\/p>\n

Sale of Embroidered Goods (HSN 5810) \u2014 12% GST<\/h3>\n

If you buy plain fabric yourself, do the embroidery on it, and then sell the finished embroidered fabric or product to a customer, this is a sale of goods \u2014 not job work. In this case, you are selling embroidered fabric or products, which falls under HSN 5810 at 12% GST. This applies to embroidery units that procure their own raw materials and sell finished embroidered fabric, lace, motifs, or patches in the open market.<\/p>\n<\/section>\n

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Real Example: Priya’s Embroidery Unit in Surat<\/h2>\n

Priya runs a machine embroidery unit in Surat. She has two types of customers. First, garment factories send her cut fabric pieces and ask her to do embroidery as per their design. She returns the embroidered pieces to them. For this work, she charges a job work fee and invoices under HSN 9988 at 5% GST. Second, she also makes embroidered dupatta borders and saree falls from her own purchased fabric, which she sells in the wholesale market. For this, she invoices under HSN 5810 at 12% GST.<\/p>\n

Understanding this distinction clearly saves Priya significant money and keeps her audit-ready. Her job work clients (garment factories) also benefit because they can claim ITC on the 5% GST she charges them, which reduces their overall tax cost. Also, charging the wrong rate \u2014 for example, applying 12% on job work \u2014 would mean her clients pay extra tax unnecessarily and may choose a competitor who charges correctly.<\/p>\n<\/section>\n

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GST Registration Requirement for Embroidery Units<\/h2>\n

GST registration is mandatory for embroidery units with an annual aggregate turnover exceeding \u20b920 lakh (for service\/job work providers) or \u20b940 lakh (for goods sellers). Also, if you provide embroidery job work services across state borders \u2014 for example, if you are in Gujarat and your client is in Maharashtra \u2014 inter-state supply rules apply and GST registration is mandatory regardless of turnover. Furthermore, if you supply job work services to exporters (zero-rated supply), GST registration is mandatory to claim refunds.<\/p>\n

Even if your turnover is below the threshold, voluntary GST registration is strongly recommended for embroidery units doing job work for GST-registered garment factories. Most large garment manufacturers prefer to work with GST-registered job workers because they can claim ITC on the job work charges they pay you. Without GST registration, you lose these larger clients.<\/p>\n<\/section>\n

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ITC (Input Tax Credit) for Embroidery Businesses<\/h2>\n

As a GST-registered embroidery unit, you can claim ITC on all your business purchases. This includes: GST paid on embroidery threads and yarns, GST paid on embroidery machine maintenance and spare parts, GST paid on embroidery designs or software, and GST paid on business-related electricity and internet services. This ITC offsets your output tax liability, reducing how much you pay to the government. Also, if you are doing mostly export job work (zero-rated supply with refund), you can claim a refund of the accumulated ITC.<\/p>\n<\/section>\n

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Monthly GST Compliance for Embroidery Units<\/h2>\n

Once GST registered, you must file GSTR-1 by the 11th of each month (reporting all your outward supplies \u2014 invoices issued to clients), and GSTR-3B by the 20th of each month (reporting your net GST liability and paying any tax due). Also, verify your GSTR-2B before filing GSTR-3B to ensure you are claiming only eligible ITC. If you are under the QRMP scheme (Quarterly Return Monthly Payment), your filing frequency is reduced but you still pay GST monthly.<\/p>\n<\/section>\n

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Manage your embroidery business GST with BillAcco<\/h3>\n

Job work invoices at 5%, fabric sale invoices at 12% \u2014 BillAcco handles both correctly with the right HSN codes and generates your monthly GST reports automatically.<\/p>\n

Create Free Account \u2192<\/a>\n <\/div>\n

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Frequently Asked Questions (FAQs)<\/h2>\n
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1. What is the GST rate on hand embroidery job work in India?<\/h3>\n

Hand embroidery job work performed on goods belonging to a registered principal is taxed at 5% GST under HSN 9988 (job work services for textile and textile products, Chapters 50\u201363). However, if you are selling hand-embroidered finished products that you made from your own materials, the sale is taxed at 12% GST under HSN 5810 for embroidery in the piece or motifs.<\/p>\n<\/p><\/div>\n

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2. Is embroidery thread and yarn GST-exempt or taxable?<\/h3>\n

Embroidery threads and yarns are taxable under GST, not exempt. Cotton yarn (HSN 5204\u20135207) is generally taxed at 5%. Synthetic or man-made yarns (HSN 5401\u20135406) are generally taxed at 12%. Metallic yarn used for embroidery (HSN 5605) is taxed at 12%. Because you pay GST on these inputs, you can claim ITC on them against your output tax, which significantly reduces your net GST payment.<\/p>\n<\/p><\/div>\n

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3. Do embroidery units need to generate e-invoices?<\/h3>\n

E-invoicing (IRN generation through the IRP portal) is mandatory for businesses with aggregate annual turnover above \u20b95 crore. If your embroidery unit’s total turnover (from all supplies \u2014 job work, fabric sales, etc.) exceeds \u20b95 crore in a financial year, all B2B invoices must be generated with an IRN. If your turnover is below \u20b95 crore, e-invoicing is not mandatory but regular GST invoicing is still required.<\/p>\n<\/p><\/div>\n

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4. If I receive fabric from a client without a delivery challan, can I still work on it?<\/h3>\n

Under GST job work rules, when a principal (your client) sends goods to you for job work, they must send a delivery challan along with the goods. This challan documents the goods movement and is required under GST law. Also, the principal must record this in their GST returns. If you receive fabric without a delivery challan, ask your client to provide one. Working without a challan creates a compliance risk for both you and your client.<\/p>\n<\/p><\/div>\n

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5. Can an embroidery unit claim ITC on machine purchase?<\/h3>\n

Yes. GST paid on the purchase of an embroidery machine \u2014 whether computerized, multi-head, or single-head \u2014 is eligible as ITC since the machine is used entirely for your business. This ITC can be claimed in the month of purchase and set off against your output tax. Also, GST on machine servicing, spare parts, and machine import duties (where applicable) are also eligible for ITC. Maintaining proper purchase invoices is essential to support these ITC claims.<\/p>\n<\/p><\/div>\n<\/section>\n<\/div>\n