Choosing the Right HSN Code for Multi-Material Costumes: A Comprehensive Guide

When it comes to selling or renting multi-material costumes, it's essential to get the HSN code right. The Harmonized System of Nomenclature (HSN) code is a six-digit code used for classifying goods under the Indian Goods and Services Tax (GST) regime. In this guide, we'll walk you through the process of selecting the correct HSN code for your multi-material costume business.

Understanding HSN Codes

HSN codes are used to categorize goods into specific categories, making it easier to track and manage GST compliance. The codes are divided into two categories: 4-digit and 6-digit codes. The 4-digit code is used for turnover up to ₹5 Crores, while the 6-digit code is used for turnover above ₹5 Crores.

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HSN Codes for Costumes

Costumes made from knitted/stretchable materials, such as spandex and T-shirt material, fall under HSN code 6114. These costumes are subject to a 5% GST rate if the sale value is ≤ ₹2,500 per piece and an 18% GST rate if the sale value is > ₹2,500 per piece.

Costumes made from non-knitted/woven materials, such as cotton and silk, fall under HSN code 6211. These costumes are also subject to a 5% GST rate if the sale value is ≤ ₹2,500 per piece and an 18% GST rate if the sale value is > ₹2,500 per piece.

Imitation jewelry, such as artificial rings, necklaces, and bangles, falls under HSN code 7117 and is subject to a flat 3% GST rate.

Wigs and hair extensions, including false beards and eyebrows, fall under HSN code 6704 and are subject to an 18% GST rate.

Hats and headgear, including costume hats and caps, fall under HSN code 6505 and are subject to an 18% GST rate.

Goggles and sunglasses, including costume or fashion eyewear, fall under HSN code 9004 and are subject to an 18% GST rate.

Props and carnival articles, including festive, amusement, and magic props, fall under HSN code 9505 and are subject to an 18% GST rate.

Rental Services

Rental services for costumes, apparels, and other goods fall under SAC code 997326 and are subject to an 18% GST rate.

Rental services for props and carnival equipment fall under SAC code 997324 and are subject to an 18% GST rate.

Rental services for jewelry and miscellaneous accessories fall under SAC code 997329 and are subject to an 18% GST rate.

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Conclusion

In conclusion, choosing the right HSN code for your multi-material costume business is crucial for GST compliance. By understanding the different HSN codes and their corresponding GST rates, you can ensure that your business is in compliance with the Indian GST regime.

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