Clothing GST calculator: 5% or 18% after discount

Updated 12 November 2026 · free, no login

Readymade clothes are taxed at 5% when the sale value of a piece is ₹2,500 or less, and at 18% above that. The test uses the price without GST after the discount on the invoice. A ₹2,999 kurti sold at 20% off has a sale value of about ₹2,285, so it is billed at 5%.

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What are you selling? Readymade garment (shirt, kurti, jeans, lehenga) Fabric / saree (woven, by piece or metre)

Price per piece (₹)

Discount %Discount shown on the bill

Or flat discount per piece (₹)

Quantity

The price above is Including GST (MRP / tag price) Before GST

GST rate: 5%
Price after discount: ₹2,399.20
Sale value per piece (without GST): ₹2,284.95
CGST + SGST per piece: ₹57.12 + ₹57.12
Bill total (1 pc): ₹2,399.20

The sale value per piece is ₹2,500 or less, so 5% applies.

How to use it

Pick garment or fabric. Readymade garments follow the ₹2,500 rule; woven fabric and most sarees are 5% at any price.
Enter price and discount. Type the tag price per piece and the discount you give on the bill, as % or ₹ per piece.
Read the GST. See the rate, the sale value without GST, CGST and SGST per piece and the bill total for the quantity.

Clothing GST rule with examples

Tag price (incl. GST)	Discount	Sale value	GST
₹1,999	None	₹1,903.81	5%
₹2,999	20% on the bill	₹2,284.95	5%
₹3,499	None	₹2,965.25	18%
₹4,000 saree (woven fabric)	None	₹3,809.52	5%

Rates from the readymade garments GST page and the saree GST page. Read more in GST on clothes in 2026.

Questions

What is the GST rate on clothes in 2026?

From 22 September 2025, readymade garments and made-up textile articles with a sale value of up to ₹2,500 per piece are taxed at 5%, and those above ₹2,500 per piece at 18% (Notification 9/2025-CT(Rate)).

Does the discount change the GST rate on clothes?

It can. The ₹2,500 test is on the sale value of each piece, so a discount shown on the invoice that brings a ₹2,999 kurti to ₹2,399 makes it a 5% item. Discounts given later, outside the invoice, do not change the rate on that bill.

Is the ₹2,500 limit with GST or without GST?

It is on the sale value, which is the price without GST. A tag price of ₹2,625 including 5% GST is exactly ₹2,500 of value.

Is the limit per piece or per bill?

Per piece. A bill with three shirts of ₹1,500 each is 5% on every shirt even though the bill is ₹4,500.

What is the GST on sarees and fabric?

Woven fabrics of cotton, silk and man-made fibres, which is how most sarees are classified, are listed at 5% whatever the price. Check the HSN on your supplier's invoice.

Does billing software switch between 5% and 18% automatically?

Not RichBills: you save the right rate on each item. Shops usually keep items above and below ₹2,500 as separate items or price lists. This calculator helps you check a price before you set it.

Kapde ki dukaan ka GST bill, size aur colour ke saath

Save the right GST rate on each item once and RichBills uses it on every bill, with HSN and the CGST/SGST split. Size and colour variants, barcode tags and exchanges included.

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