HSN code 5203 is the Customs Tariff heading for cotton, carded or combed, in Chapter 52 (Cotton). The GST rate is 5%: 2.5% CGST + 2.5% SGST within a state, or 5% IGST to another state. Rates are from 9/2025-Central Tax (Rate) or 10/2025-Central Tax (Rate), as amended, as of 2026-10-21.
GST rate entries for HSN 5203
These are the entries of the current GST rate notifications whose column (2) names heading 5203 or one of its sub-headings or tariff items. The description is the notification's own wording; the goods must match it for the rate to apply.
| HSN scope | Description of goods (notification wording) | GST | Entry |
|---|---|---|---|
| 5201 to 5203 | Cotton and Cotton waste | 5% | 9/2025-CT(R), Schedule I, S. No. 331 |
- 9/2025-CT(R), Schedule I, S. No. 331: One entry shared by 3 headings or chapters (5201, 5202, 5203); it applies to 5203 in the same way as to the others.
Goods of heading 5203 that do not match any description above fall under the residual entry, Schedule II S. No. 639 ("Goods which are not specified in Schedule I, III, IV, V, VI or VII"), at 18%, unless an "Any Chapter" entry or the nil-rated list of Notification 10/2025-Central Tax (Rate) covers them by description.
Chapter 52 entries that can also apply
These entries name the whole of Chapter 52 in column (2), so they reach every heading of the chapter, including 5203, but only for goods that match their description.
| HSN scope | Description of goods | GST | Entry |
|---|---|---|---|
| 52 | Gandhi Topi, Khadi yarn | Nil (0%) | 10/2025-CT(R), S. No. 144 |
| 50 to 55 | Khadi fabric, sold through Khadi and Village Industries Commission (KVIC) and KVIC certified institutions/outlets | Nil (0%) | 10/2025-CT(R), S. No. 145 |
CGST, SGST and IGST split for HSN 5203
The rate notifications fix the central tax (CGST). State tax (SGST, or UTGST in a Union territory without a legislature) is levied at the same rate under the matching state notifications, and IGST on an inter-State supply equals the two together.
| Total GST | CGST | SGST / UTGST | IGST |
|---|---|---|---|
| Nil (0%) | 0% | 0% | 0% |
| 5% | 2.5% | 2.5% | 5% |
Worked example: a ₹1,000 sale under HSN 5203
- At nil rate: taxable value ₹1,000.00, no CGST, SGST or IGST, invoice total ₹1,000.00.
- At 5%: taxable value ₹1,000.00. Within your state, CGST ₹25.00 + SGST ₹25.00 = ₹50.00, invoice total ₹1,050.00. To a buyer in another state, IGST ₹50.00, the same total.
For any other amount, the GST calculator gives the same split, and works backwards from a tax-inclusive price.
Billing nil-rated goods of HSN 5203
Entries in Notification 10/2025-Central Tax (Rate) exempt the goods from the whole of the central tax, and the matching state and integrated tax notifications do the same. A registered supplier of only such goods issues a bill of supply instead of a tax invoice. Input tax credit on inputs and services used for these supplies is not available, so a business that sells both taxable and nil-rated goods has to split its credit between them.
How to write HSN 5203 on an invoice
Notification 78/2020-Central Tax sets the number of HSN digits on a tax invoice by the aggregate turnover of the previous financial year. Up to ₹5 crore, print at least 4 digits (5203) on invoices to registered buyers; HSN may be left off invoices to unregistered buyers. Above ₹5 crore, print 6 digits on every tax invoice. Many sellers print the full 8-digit tariff item anyway, because it matches the shipping bill for exports and shows which entry you used.
Charge CGST and SGST when the buyer is in your state and IGST when the place of supply is another state. The invoice also needs your GSTIN, the buyer's GSTIN for B2B sales, the invoice number and date, the quantity, the taxable value and the tax at each rate. The HSN-wise summary in GSTR-1 is built from the same codes, so set the code once per item in your billing software. Make a one-off bill with the free GST invoice generator, or bill every day in FundRaksha Book, which stores the HSN and rate on each item and splits the tax for you.
Other headings in Chapter 52
Chapter 52 of the Customs Tariff is Cotton. This list has 12 of its headings, each with its own page. See all Chapter 52 headings.
- HSN 5201: Cotton, not carded or combed (5%)
- HSN 5202: Cotton waste (5%)
- HSN 5204: Cotton sewing thread (5%)
- HSN 5205: Cotton yarn, containing 85% or more (5%)
- HSN 5206: Cotton yarn, containing less (5%)
- HSN 5207: Cotton yarn put up for retail sale (5%)
- HSN 5208: Woven fabrics of cotton (5%)
- HSN 5209: Woven fabrics of cotton (5%)
- HSN 5210: Woven fabrics of cotton (5%)
- HSN 5211: Woven fabrics of cotton (5%)
- HSN 5212: Other woven fabrics of cotton (5%)