Official Classification

Under the Harmonized System of Nomenclature (HSN), the code 5207 specifically identifies cotton yarn 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 5207 on all Tax Invoices for cotton yarn
✓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 5207

"Classifying cotton yarn 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."