Official Classification

Under the Harmonized System of Nomenclature (HSN), the code 5203 specifically identifies cotton and cotton waste for the purpose of taxation and trade in Bharat. This ensures uniform classification across all Indian states and Union Territories.

Intra-State Split

CGST 2.5% + SGST 2.5%

Inter-State Split

IGST 5%

Compliance Check-list

✓Mention HSN 5203 on all Tax Invoices for cotton and cotton waste
✓Include in HSN-wise summary of GSTR-1 filings
✓Mandatory for E-way bill generation for goods above threshold
✓Ensure Input Tax Credit (ITC) matches this classification

✨ AI Compliance Insight

Expert Advice for 5203

"Classifying cotton and cotton waste correctly is critical to avoid litigation. While the base rate is 5%, always check for anti-dumping duties if importing, especially under the Cotton category. AasanKhata automatically monitors these shifts for you."