GST on Shoes/ HSN code of Shoes : After the implementation of GST in India, there has been a lot of revisions in the GST rates and bifurcation based on the price bracket too. If you are a dealer or seller, then you must know the HSN codes of the items you are covering. And the same goes for the shoe industry too. Thus, there may be some confusion regarding the GST on Shoes and HSN code of shoes.
Table of Contents
What is GST
Goods and services tax is the single tax slab introduced for several indirect taxes. Although Indian GST tax slab is categorized in basically 4 different slabs ( leaving that for gold 3% and petroleum still operated as VAT and others ). The different GST rates finalized are-
5 %, 12%, 18%, 28%
What is CGST, SGST, and IGST
CGST is Central Goods and Services tax.
SGST is State Goods and Services Tax
IGST is Integrated Goods And Service Tax. It is used for interstate purchase/selling.
CGST and SGST are equally distributed among the Centre and State. For example – If there is a GST rate of 18%, that means 9 % will be CGST and 9% will be SGST.
Under IGST the GST rate is the same but the billing format changes. For example, if the GST rate is 18%, the billing will show only IGST@18% and will not be bifurcated into CGST and SGST.
What is HSN CODE on Shoes in India/ HARMONIZED SYSTEM OF NOMENCLATURE
In simple words, the HSN code is a unique code allocated to every good so that the categorization is well simplified.
What is SAC ( SERVICE ACCOUNTING CODES )-
People often get confused between the HSN and SAC codes. SAC codes are the unique codes allocated to different types of services. Thus, HSN code is for goods and SAC code is for services as simple as that.
GST on shoes/ GST on footwear
Now coming back to our main topic lets find out the GST on Shoes / GST on footwear.
Footwear or in our topic Shoes have two basic GST slabs, quite confusing right. Don’t worry I will make that too easy to understand for you.
Product and price | GST rates on Shoes |
|
Footwear/Shoes under Rs. 1000 | 12% |
|
Footwear/Shoes under above Rs. 1000 |
18% |
Thus, in simple words, if you are buying any footwear up to Rs. 1000, the GST rate charged by the seller will be 12% ( 6 % CGST + 6 % SGST ).
And if you are buying shoes above Rs. 1000, the GST Rate charged will be 18% (9% CGST + 9% SGST).
HSN Codes of footwear/shoes
HSN code allotted to footwear is 64 and it’s type i.e. make and finish decides it’s subcategory i.e. 01,02,03,04,05, and 06.
Thus, HSN codes of shoes are as follows-
64 – For shoes having price up to Rs. 1000.
6401 – Footwear with rubber and plastic top soles but not fixed and stitched
6402 – For Footwear with rubber and plastic top soles.
6403 – Shoes with leather mixing with different types.
6404 – Footwear/Shoes with better textile material and leather may be infused.
6405 – Slippers, other types of shoe base, etc.
6406 – Shoes/footwear parts and accessories.
Conclusion
Shoes are an integral part of any fashion store or even in basic wearable store. And with implementation of GST On Shoes , several things have been changed. Whether you like it or not, we all have to live with these changes and must incorporate everything accordingly. And for that one must be aware of the basic knowledge of GST and GST On Shoes.
If you have any doubts related to the types of shoes for men, please go through this article.
I hope that I cleared all your queries related to GST on shoes/ footwear in India. Still, if you have any doubt please leave us a comment below. And for more such articles stay tuned to BUYBESTSHOES.
Must Read-
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- Shoelace styles for formal shoes/Sports shoes
(Post Updated on 30/04/2022)