Footwear is one of the essential commodities of an average person. As a part of fashion industry footwear is an essential component of the apparel. The government has indeed provided numerous reliefs to the traders of footwear having GST registration.
Recently, the GST tax rate on goods under HSN 64 has been revised according to GST council meet that was held on 21st July, 2018. The detail of limited GST rate on Footwear costing up to INR 1000 for each pair is discussed in this article.
- Reference to the 28th GST council meeting :-
The GST council in its 28th meeting that was held on 21st of July 2018 and was headed by then Union Minister of Finance, Railways and Coal Sh. Piyush Goyal ji had again taken a genius consumer-friendly decision by revealing its groundbreaking economic and monetary path breaking reforms that were apparently in the interest of the traders having GST registration and end users.
More to the point, the GST chamber has introduced noteworthy reforms in the footwear segment as regards GST rates applicable on various types of footwear, apart from much-awaited improvement of GST Return Filing procedure with the goal that the business entities all over India can get the most extreme aid from the ultra-progressive tax regime.
Anyways, in the footwear segment, the GST meeting had brought forward new GST rates. The GST rates of foot wear have been changed as below-
- GST @ 5% has now been imposed on the footwear whose price is up to INR 1,000/ – .
- And for the footwear whose price is more than INR 1,000/ – , GST @ 18% has now been imposed.
Hence, these now rates shall now apply on all the dealers of the footwear having GST registration.
- GST Rate reduction on Footwear accessories :-
Most recent GST rates on Footwear costing up to INR 1000 for every pair is 5%. The residential footwear segment holds gigantic potential to make occupations and procure remote trade. Decrease of GST on footwear would help advance development of residential footwear industry, as it has been said in a statement.
- Role of footwear industry in economy :-
The household footwear area holds gigantic potential to make employments and gain remote trade. Decrease of GST on footwear would help advance development of local footwear sellers having GST registration.
- Rate of GST on footwear :-
The applicable GST rates on the footwear have been mentioned below along with their respective HSN codes:-
|HSN Code||Description||Rate (%)|
|6401||Water resistant footwear types with outer sole and upper of rubber made or of plastic, the upper part of which is not fixed to the sole or made by stitching, riveting, nailing, screwing or similar procedures||18|
|6402||Other foot wear with the upper sole and uppers of rubber or plastic made.||18|
|6403||Footwear with upper soles of rubber, plastics, leather or material of composition leather and upper part of leather||18|
|6404||Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials||18|
|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||18|
|64||Footwear having a retail sale price not exceeding (INR 500 to1000 substituted on 27/07/2018) per pair, provided that such retail sale price is indelibly marked or embossed on the footwear itself.||5|
- Overall impact on GST rate reduction on footwear sector :-
As we see, the government has looked for a decrease of GST rate to 12 for each on footwear evaluated above Rs 1,000.
- GST rate on footwear worth up to Rs 1,000 was decreased to five percent, while those over this worth still draw in a GST pace of 18 percent.
- At present, the fare of calfskin and its items stands at about USD 6 billion. Significant fare goals incorporate Europe and the US.
- A year ago, the trade clergyman reported a Rs 2,600 crore bundle for the calfskin part to lift sends out.
- The foot wear industry today gives jobs to around 42 lakh individuals.
- So, we see that this industry is the source of survival of millions of people.
- The rate cut of GST will give hope to many people as well as traders having GST registration.