GST Council cuts tax on footwear, apparel up to ₹2,500
New Delhi: In a major relief for the footwear and apparel industry, the GST Council on Wednesday approved lowering the tax rate to 5% for items priced up to ₹2,500 per piece, PTI reported.
Currently, footwear and garments up to ₹1,000 attract 5% GST, while those above the threshold are taxed at 12%.
With this move, the limit for the lower slab has been more than doubled, offering consumers wider relief and boosting demand in a price-sensitive segment.
The decision was taken at the 56th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and attended by state finance ministers.
The Council also cleared a wider restructuring of the indirect tax regime by scrapping the 12% and 28% slabs.
Most items previously taxed at these rates will now move into the 5% and 18% categories, a step seen as simplifying the GST structure.
Industry representatives have long argued that the 12% GST on affordable footwear and apparel discouraged consumption and impacted small manufacturers.
The revised threshold is expected to ease compliance, lift retail sales, and support the textile and footwear sectors, which are already grappling with the fallout of steep U.S. tariffs on Indian exports.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
