GST on Footwear in India — 5% or 18%?

It depends on the price per pair. Footwear up to ₹2,500 per pair attracts 5% GST; footwear above ₹2,500 per pair attracts 18% GST. There is no 12% slab for footwear any more — that was removed by the GST 2.0 rationalisation effective 22 September 2025.

Two things changed on 22 September 2025. First, the price threshold rose from ₹1,000 to ₹2,500 per pair. Second, footwear above the threshold now attracts 18% instead of the old 12%. The biggest gainer is footwear priced ₹1,001–₹2,500, which dropped from 12% to 5% GST.

No. There is no nil-rated or exempt category for footwear. Every pair is taxable at either 5% (up to ₹2,500 per pair) or 18% (above ₹2,500), and parts of footwear are taxed at 18%. Unlike some food items, footwear has no zero-rated bracket.

The ₹2,500 test is applied on the Retail Sale Price (RSP/MRP) declared or embossed on the footwear, per pair. If a shoe has an RSP of ₹2,800 it attracts 18% even if sold at a discounted ₹2,400. Conversely an RSP of ₹2,400 stays at 5% even if effectively sold higher. For unbranded footwear without a printed RSP, the transaction value per pair is compared with ₹2,500.

Per pair. The threshold is tested on the price of each individual pair of footwear, not the total invoice value. Buying five pairs of ₹1,500 shoes on one bill is still five 5% supplies, not an ₹7,500 supply at 18%.

5% GST. This band was taxed at 12% under the old rules but now falls within the ₹2,500 threshold, so it attracts only 5% from 22 September 2025 — the single biggest footwear relief under GST 2.0.

Rubber and hawai chappals, being inexpensive footwear typically priced well under ₹2,500 a pair, attract 5% GST. They fall under HSN 6402. Only if a particular pair were priced above ₹2,500 would 18% apply — which is rare for this category.

Branded sports shoes from labels like Nike, Adidas, Puma or Reebok are almost always priced above ₹2,500 per pair, so they attract 18% GST. Any budget sports shoe priced at ₹2,500 or below would instead attract 5%. There is no higher luxury slab for footwear.

Children's footwear follows the same price test. School shoes, sandals and children's footwear priced at ₹2,500 or less per pair attract 5% GST; branded children's footwear above ₹2,500 attracts 18%. Most everyday children's footwear sits in the 5% slab.

Safety shoes and industrial protective footwear (steel-toed boots, chemical-resistant boots) are usually priced above ₹2,500 a pair, so they generally attract 18% GST under HSN 6403/6405. If a particular protective pair is priced at ₹2,500 or below, 5% applies.

Footwear falls under HSN Chapter 64. HSN 6401 covers waterproof footwear; 6402 other rubber/plastic footwear; 6403 leather-upper footwear; 6404 textile-upper footwear; 6405 other footwear; and 6406 parts of footwear. For 6401–6405 the rate is 5% up to ₹2,500 a pair and 18% above; 6406 parts are a flat 18%.

Parts of footwear — soles, heels, uppers, insoles under HSN 6406 — attract 18% GST irrespective of value. The ₹2,500 threshold does not apply to parts; it only applies to complete footwear under headings 6401 to 6405.

Yes. Registered footwear manufacturers, wholesalers and retailers can claim Input Tax Credit on GST paid on inputs such as leather, rubber, chemicals, packaging and machinery, subject to the usual Section 16 conditions and GSTR-2B matching. ITC is blocked only where footwear is bought for personal use or gifting under Section 17(5).

Yes. Manufacturers of footwear in the 5% slab often pay 18% on chemicals, adhesives and machinery, creating 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 well-established relief for the footwear sector.

Footwear is a supply of goods, so registration is mandatory once aggregate turnover crosses ₹40 lakh in a financial year (₹20 lakh for special-category states). Businesses making inter-state supplies or selling through e-commerce operators generally have to register regardless of turnover.