GST on Footwear in India —
5% or 18%?
The correct GST rate on shoes, chappals, sandals and boots after GST 2.0 — the new ₹2,500-per-pair threshold, HSN codes 6401-6406, ITC and the inverted-duty refund.
Since 22 September 2025 (GST 2.0), footwear priced at ₹2,500 or less per pair is taxed at 5%, and footwear priced above ₹2,500 per pair at 18%. The old ₹1,000 threshold and the 12% slab are gone. Parts of footwear (HSN 6406) attract 18% regardless of value. The rate depends on the sale price/RSP per pair, not the type of footwear.
GST Rate on Footwear — Decision Table
The GST rate for every common footwear scenario after the GST 2.0 rate rationalisation, with ITC eligibility.
| Type of Footwear | Price / Pair | GST Rate | ITC |
|---|---|---|---|
| Rubber / hawai chappals | ≤ ₹2,500 | 5% | Yes |
| PVC & local sandals | ≤ ₹2,500 | 5% | Yes |
| Formal / leather shoes | ≤ ₹2,500 | 5% | Yes |
| Canvas / textile shoes | ≤ ₹2,500 | 5% | Yes |
| Branded sports shoes | > ₹2,500 | 18% | Yes |
| Premium / designer footwear | > ₹2,500 | 18% | Yes |
| Safety / industrial boots | > ₹2,500 | 18% | Yes |
| Parts of footwear (soles, uppers, heels) | Any | 18% | Yes |
| Footwear laces (HSN 5806) | Any | 18% | Yes |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025 (Notification 09/2025-CT(R)). Confirm on the official GST portal before invoicing.
Which GST Rate Applies to Your Footwear?
For complete footwear, exactly one number decides it — the sale price (or declared RSP) per pair. The type of footwear no longer matters; the same test applies to leather, rubber, plastic and textile footwear alike.
Footwear ≤ ₹2,500 per pair
- Chappals, sandals, everyday shoes
- Most mass-market & children's footwear
- Leather, rubber, PVC or textile — all covered
- Input Tax Credit available
- Big relief: ₹1,001–₹2,500 dropped 12% → 5%
Footwear > ₹2,500 per pair
- Branded sports shoes & premium footwear
- Designer, luxury & most safety boots
- Parts of footwear (HSN 6406) at any price
- Input Tax Credit available
- Was 12% before 22 Sep 2025
The ₹2,500 test is applied per pair on the Retail Sale Price (RSP) declared/embossed on the product, not on a discounted promotional price. A shoe with an RSP of ₹2,800 sold at ₹2,400 still attracts 18%; an RSP of ₹2,400 stays at 5% even if bundled higher.
Not sure which rate applies to your SKUs?
Get My GST Rate →Footwear HSN Codes (Chapter 64)
All footwear sits in HSN Chapter 64. The chapter heading identifies the material; the ₹2,500 price test then sets 5% or 18% for complete footwear, while parts under 6406 are a flat 18%.
| HSN | Covers | GST Rate |
|---|---|---|
| 6401 | Waterproof footwear (rubber/plastic sole & upper) | 5% / 18% |
| 6402 | Other rubber/plastic footwear (PVC chappals, sports) | 5% / 18% |
| 6403 | Leather-upper footwear (formal shoes, boots) | 5% / 18% |
| 6404 | Textile-upper footwear (canvas, sneakers) | 5% / 18% |
| 6405 | Other footwear | 5% / 18% |
| 6406 | Parts of footwear (soles, uppers, heels, insoles) | 18% |
5% applies at ≤₹2,500/pair, 18% above ₹2,500/pair, for headings 6401-6405. Parts (6406) are 18% with no threshold. See the full HSN code guide.
How GST Adds Up on a Pair of Shoes
5% Everyday shoes (₹1,800/pair)
18% Sports shoes (₹4,000/pair)
A pair priced between ₹1,001 and ₹2,500 that was earlier at 12% now falls to 5% — the single biggest footwear relief under GST 2.0, reducing the tax on a ₹1,800 pair from ₹216 to ₹90.
Selling footwear online or in retail? Get your SKU-wise rate mapping right.
Get Footwear GST Advice →ITC and the Inverted-Duty Refund
Both the 5% and 18% footwear slabs are regular taxable supplies, so registered manufacturers, wholesalers and retailers can claim Input Tax Credit on GST paid on inputs — leather, rubber, chemicals, machinery — subject to Section 16 conditions.
ITC is available on
- GST on leather, rubber, PVC and textile inputs
- Adhesives, chemicals and packaging (often 18%)
- Plant, machinery and moulds used in manufacture
- Purchases by traders for resale
Watch out for
- Footwear bought for personal use / gifting — blocked u/s 17(5)
- Missing supplier invoices / GSTR-2B mismatches
- Accumulated ITC on the 5% output slab
- Wrong RSP classification triggering rate demands
Makers of ≤₹2,500 footwear (output 5%) often pay 18% on chemicals, adhesives and machinery — an inverted duty structure where input GST exceeds output GST. The accumulated ITC can be claimed as a refund under Section 54(3) of the CGST Act, a long-standing relief for the footwear industry.
Stuck with accumulated ITC on 5% footwear?
Talk to a GST Expert →Footwear GST Compliance Checklist
GST registration becomes mandatory once aggregate turnover crosses ₹40 lakh for a goods supplier (₹20 lakh in special-category states). Here is the compliance picture for a footwear manufacturer, wholesaler or retailer:
- GST registration (GSTIN)
- SKU-wise HSN & rate mapping
- RSP-based ₹2,500 classification
- Tax invoice with HSN codes
- GSTR-1 (outward supplies)
- GSTR-3B (monthly/quarterly)
- ITC reconciliation with GSTR-2B
- Inverted-duty refund (Section 54(3))
- E-invoicing (if turnover applies)
- E-way bill on movement
- GSTR-9 annual return
- Books & stock records upkeep
Any pricing tables, ERP and POS software still coded to the old ₹1,000 / 12% rule will over-charge customers and mis-report GST. Re-map every footwear SKU to the ₹2,500 threshold and the 5% / 18% slabs effective 22 September 2025.
Frequently Asked Questions
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Selling Footwear? Get Your GST Rates Right
From the new ₹2,500 threshold and SKU-wise HSN mapping to inverted-duty refunds and monthly returns, TaxClue's CA-led team handles your footwear GST end to end — 100% online, across India.