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Goods and Services Tax (GST) is a consumption tax levied on the sale of footwear. The tax is applied at each stage of the supply chain, from manufacturing to retail. The main objective to apply GST on footwear is to streamline the taxation process, eliminate cascading taxes, and create a more transparent and uniform tax system for goods and services.
GST Rate on Footwear
The GST rate for footwear is 12% (6% CGST + 6% SGST) priced below Rs. 1000.
Ministry of Finance through Department of Revenue, has raised GST rate on footwear priced below Rs. 1000 from 5% to 12% through Notification No. 14/2021 Central Tax (Rate) dated 18.11.2021.
HSN Code for Footwear
| HSN Code | HSN Description |
| 64 | Footwear, gaiters and the like; parts of such articles |
| 6115 | PANTYHOSE, TIGHTS, STOCKINGS, SOCKS AND OTHER HOSIERY, INCLUDING GRADUATED COMPRESSION HOSIERY (FOR EXAMPLE, STOCKINGS FOR VARICOSE VEINS) AND FOOTWEAR WITHOUT APPLIED SOLES, KNITTED OR CROCHETED |
| 6401 | WATERPROOF FOOTWEAR WITH OUTER SOLES AND UPPERS OF RUBBER OR OF PLASTICS, THE UPPERS OF WHICH ARE NEITHER FIXED TO THE SOLE NOR ASSEMBLED BY STITCHING, RIVETING, NAILING, SCREWING, PLUGGING OR SIMILAR PROCESSES |
| 6402 | OTHER FOOTWEAR WITH OUTER SOLES AND UPPERS OF RUBBER OR PLASTICS - Sports footwear |
| 6403 | FOOTWEAR WITH OUTER SOLES OF RUBBER, PLASTICS, LEATHER OR COMPOSITION LEATHER AND UPPERS OF LEATHER - Sports footwear |
| 6404 | FOOTWEAR WITH OUTER SOLES OF RUBBER, PLASTICS, LEATHER OR COMPOSITION LEATHER AND 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 CUSHIONS AND SIMILAR ARTICLES; GAITERS, LEGGINGS AND SIMILAR ARTICLES, AND PARTS THEREOF |
| 8308 |
CLASPS, FRAMES WITH CLASPS, BUCKLES, BUCKLECLASPS, HOOKS, EYES, EYELETS AND THE LIKE, OF BASE METAL, OF A KIND USED FOR CLOTHING, FOOTWEAR, AWNINGS, HANDBAGS, TRAVEL GOODS OR OTHER MADE UP ARTICLES; TUBULAR OR BIFURCATED RIVETS, OF BASE METAL; BEADS AND SPANGLES, OF BASE METALS |
SAC Code for Footwear
| SAC | Category | GST Rate |
| 998721 | Repair services of footwear and leather goods | 18% |
Impact of GST On Footwear
Earlier, GST rate on footwear varies depending on factors like the material, cost, and type of footwear. Like:
| Category | Rate |
| Handmade footwear | Nil |
| Footwear priced below Rs. 1000 | 5% |
| Footwear priced between Rs. 1000 to Rs. 1500 | 12% |
| Footwear priced above Rs. 1500 or Footwear With Rubber | 18% |
But with effect from 1st January 2022, the GST rate for footwear is 12% (6% CGST + 6% SGST) for footwear priced below Rs. 1000.
This means GST rate has been increased on footwear to 12% from 5% as because footwear priced below Rs. 1000 became more expensive.
When is GST Registration for Footwear Business Required
If the footwear business exceed the turnover of Rs. 20 lakh in a financial year then, GST registration is mandatory.
GST Returns to be Filed for Footwear Businesses
- GSTR-1: The return includes details of outward supplies (sales) of goods or services. The due date is 11th or the end of the next month, depending on your turnover.
- GSTR-3B: The return summarizes both inward and outward supplies along with tax payment. The due date is 20th of the next month.
- GSTR-9: This is the annual return consolidating all monthly or quarterly returns filed during the financial year. The due date is December 31st of the next financial year. It is optional for businesses with turnover up to Rs 2 crore.
- GSTR-9C: This is a reconciliation statement between the audited financials and the GST returns filed. It's due along with GSTR-9 and is required to be filed by those taxpayers whose turn over exceeds 5 crore.
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