GST Rate On Footwear
The GST rate on footwear depends on the sale value of the footwear. Earlier, footwear costing up to Rs. 1000 per pair attracted a GST rate of 5% (2.5% CGST + 2.5% SGST), while footwear costing above Rs. 1000 per pair attracted a GST rate of 18% (9% CGST + 9% SGST). However, from January 1, 2022, the government has removed the distinction based on sale value and made all footwear, irrespective of prices, subject to a GST rate of 12% (6% CGST + 6% SGST). This means that footwear costing below Rs. 1000 per pair will become more expensive, while footwear costing above Rs. 1000 per pair will become cheaper.
What is SAC Code for Footwear?
SAC code stands for Services Accounting Code. It is a six-digit code used to classify services under GST. The SAC code for footwear is 998341. This code covers services such as repair and maintenance of footwear, dyeing, and cleaning of footwear, and other similar services related to footwear.
GST Registration for Footwear
If you are engaged in the business of supplying footwear or providing services related to footwear, you need to register under GST if your aggregate turnover exceeds Rs. 20 lakh in a financial year (Rs. 10 lakh in special category states). You can register online through the GST portal by filling the form REG-01 and submitting the required documents.
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