Confusion in HSN code and GST rate for Hand embroidered wall art

Rate / HSN codes 339 views 2 replies

One of my known ones sell Hand embroidered wall art frames. These have hand embroidery of sequins, aari, kasab, beads, moti etc on Silk fabric. Then they frame it in MDF or wooden frames and sell them. 

They are confused about the exact HSN code and GST rate on these. They will be registering for GST and are confused about the rate & HSN code.

Can someone please help?

Replies (2)

Hand -embroidered articles like these could fall under HSN code 5805 for "Hand -woven or hand-embroidered articles" if considering the embroidery aspect primarily. However, since these are framed and presented as well art, they might also be considered under HSN code 9701 for "Paintings, drawings, pastels, collages or similar decorative plaques, other works of art". Given the nature of the product (hand-embroidered on silk and framed), 9701 could be more appropriate for artworks. 

GST rate:

For Goods under HSN 9701 (works of art like painitngs,) the GST RATE IS 12% if the value is above one lakh for handicrafts or if considered as a work of art. However, if classified under handicrafts or handloom products (which might fit given the hand-embroidery on silk), there could be exemptions or lower rates depending on specific notifications. 

Considering these are hand-embroidered and on silk with framing, if treated as a handicraft or artwork:

Handicrafts: Some handicrafts have lower GST rates or exemptions.

Artworks (9701):  12 % GST.

for precise applicability and HSN code, check the latest GST notifications in GST portal. 

Hi,

There seems to be ongoing confusion regarding the correct HSN code and GST rate for hand-embroidered wall art. Many artisans and sellers are unsure whether to classify it under handicrafts, home décor, or textile art, which leads to inconsistencies in tax rates. The handmade nature of such products should ideally attract a lower GST rate to support traditional artisans and preserve cultural heritage. Authorities must issue clearer guidelines and harmonized classifications to remove ambiguity. In my opinion, simplifying the HSN structure will encourage fair trade and help small businesses grow without unnecessary tax confusion or compliance issues.


CCI Pro

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