Goods and Services Tax (GST) is a consumption tax charged on the footwear sale. The tax applies to each phase of the supply chain from manufacturing to retail. The major goal for applying the GST rate on footwear is to ease the process of tax, remove the cascading taxes, and build a clear and consistent tax regime for goods and services.
Current GST Rate Applies to Footwear
The GST rate for footwear is 12% (6% CGST + 6% SGST) and costs less than Rs. 1000.
Ministry of Finance through the Department of Revenue, has raised the GST rate on footwear cost less than INR 1000 from 5% to 12% via Notification No. 14/2021 Central Tax (Rate) on 18.11.2021.
HSN Codes for Footwear Under GST
| HSN Code | HSN Description of Different Category of Footwear |
|---|---|
| 64 | Footwear |
| 6115 | Other Footwear With Outer Soles and Uppers of Rubber or Plastics – Sports Footwear |
| 6401 | Uppers of Which Are Neither Fixed to the Sole nor Assembled by Stitching, Waterproof Footwear with Outer Soles and Uppers of Rubber or Plastics |
| 6402/6403 | Other Footwear with Outer Soles and Uppers of Rubber or Plastics – Sports Footwear |
| 6404 | Footwear with Outer Soles of Rubber, Plastics, Uppers of Textile Materials – Footwear with Outer Soles of Rubber or Plastics |
| 6405 | Other Footwear |
| 6406 | Parts of Footwear (Including Uppers Whether or Not Attached to Soles Other Than Outer Soles); Removable In-Soles, Heel |
SAC Code for Footwear
| SAC Code | Category for Service | GST Rate |
|---|---|---|
| 998721 | Repair Services of Footwear | 18% |
How GST Impacts Footwear
Before that, the GST rate on footwear differed based on factors such as the cost, material, and footwear type such as
| Different Category for Footwear with Price | GST Rate |
|---|---|
| Handmade Footwear | Nil |
| Footwear Below INR 1000 | 5% |
| Footwear Between INR 1000 – INR 1500 | 12% |
| Footwear Above INR 1500 or Footwear With Rubber | 18% |
The GST rate for footwear is 12% (6% CGST + 6% SGST) for footwear that costs less than Rs. 1000 W.E.F. on 1st January 2022.
It leads to that the GST rate has grown on footwear to 12% from 5% because footwear costing less than Rs. 1000 will get costlier.
GST Returns to be Filed for Footwear Businesses
GSTR-1: The returns consist of the information on the outward supplies (sales) of goods or services. 11th or the finish of the next month shall be the last date as per your turnover.
GSTR-3B: The return illustrates both inward and outward supplies including tax payment. The due date is 20th of the next month.
GSTR-9: It is the annual return consolidating all monthly or quarterly returns furnished at the time of the financial year. The last date is December 31st of the following financial year. It is optional for businesses with turnover up to Rs 2 crore.
GSTR-9C is a reconciliation statement between the audited financials and the GST returns filed. It is due along with GSTR-9 and is needed to get filed through those assessees whose turnover is more than 5 crore.
