Official Classification

Under the Harmonized System of Nomenclature (HSN), the code 5301 specifically identifies all goods i.e. flax, raw or processed but not spun; flax tow and waste (including yarn waste and garneted stock) 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 5301 on all Tax Invoices for all goods i.e. flax, raw or processed but not spun; flax tow and waste (including yarn waste and garneted stock)
✓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 5301

"Classifying all goods i.e. flax, raw or processed but not spun; flax tow and waste (including yarn waste and garneted stock) correctly is critical to avoid litigation. While the base rate is 5%, always check for anti-dumping duties if importing, especially under the Other Fibres category. AasanKhata automatically monitors these shifts for you."