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

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.

The finished, framed product is generally classified as an article of furnishing or other decorative article—not as embroidery fabric merely because the embroidery is on silk. A likely heading is 9701 for original works of art executed entirely by hand, but that heading has specific scope and exclusions; a product made for commercial sale as decorative wall art may instead fall under 9703 only if it qualifies as an original sculpture, or another appropriate heading based on its objective characteristics. Classification cannot be settled from the materials alone.

• Check the product’s design, whether each piece is an original handmade work or a standard/repeated design, and how it is marketed and used. The MDF/wood frame and whether the article is principally valued as artwork or as a furnishing/decorative item may also matter.
• Do not assume that embroidery on silk makes the sale a silk textile under Chapter 58, or that handwork automatically qualifies for an “artwork” rate. Verify the exact heading and applicable GST rate against the current Customs Tariff and GST rate notifications before invoicing or registration.
• If they sell both framed pieces and unframed embroidered panels, assess and classify those separately; keep product photographs, descripttions, costing and supplier records to support the chosen classification.

This classification should be checked as part of setting up the product master and GST invoicing workflow. Manual classification across varied designs is difficult; automation can reduce repetitive work while professional judgment stays in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For details, connect with us on WhatsApp https://wa.me/message/3HVOZ7HIY4ESC1.