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- Key Highlights
- What are HSN Codes and How Do They Apply to Footwear?
- GST Rates for Footwear, Gaiters, and Parts of Such Articles
- Impact of GST on Footwear Manufacturers, Retailers, and Consumers
- Maximising Savings on Footwear Purchases
- Make Informed Choices While Buying Footwear
- FAQS - FREQUENTLY ASKED QUESTIONS
Key Highlights
- GST rates and HSN codes for footwear, gaiters, and related parts vary based on materials and design.
- The shoes HSN code applies to different categories, from casual wear to sports shoes and more.
- The introduction of GST simplifies tax classification, making it easier for businesses to manage taxes on footwear and parts.
Walking through the world of footwear taxes might sound dull, but getting the right GST rates and HSN codes for your shoes could save you significant money and headaches.From the stylish heels stepping through corporate hallways to the sturdy boots protecting workers on construction sites, footwear serves both fashion and function across India.This massive market includes everything from everyday sandals to specialised industry footwear—and navigating the tax landscape can be just as varied. Whether you're crafting, selling, or simply shopping for footwear, understanding the tax framework isn't just about compliance—it's about making smarter business and purchasing decisions.On that note, let's explore how GST rates shift based on materials and design, decode those mysterious HSN codes that determine your tax bracket, and understand why these details matter for everyone in the footwear ecosystem.
What are HSN Codes and How Do They Apply to Footwear?
HSN codes (Harmonized System of Nomenclature) are a universal classification system used to categorise goods for taxation purposes. Under the Goods and Services Tax (GST) system, HSN codes are essential for determining the GST rate applicable to different goods and products. For businesses, these codes ensure that the correct tax is applied, minimising the risk of errors and penalties.The shoes HSN code, for example, is used to classify footwear for tax purposes. Understanding how these codes apply to different types of footwear and their components is important for both businesses and consumers.
Footwear Categories Under HSN Codes
Footwear, gaiters, and related parts come under the broader category of HSN code 6401. However, various subcategories under this code classify footwear based on material, use, and design.Here's a breakdown of some of the common HSN codes for footwear:
- HSN Code 6401 : Footwear with outer soles of rubber, plastics, leather, or composition leather.
- HSN Code 6402 : Footwear with outer soles of rubber or plastic but made for specific purposes, such as sports shoes or gaiters.
- HSN Code 6403 : Footwear made of textile materials with rubber or plastic soles.
- HSN Code 6404 : Parts of footwear, such as outer soles, insoles, and heels .
The correct HSN code must be used when determining the GST rate on footwear. Incorrect application of HSN codes can result in incorrect tax calculations and potential penalties.
GST Rates for Footwear, Gaiters, and Parts of Such Articles
The GST rate for footwear varies depending on the type of footwear, the material used, and the purpose of the footwear (e.g., formal, casual, sports). In general, the GST rate and HSN code for footwear and related parts fall under specific tax brackets.
1. GST Rate for Footwear
For most types of footwear, the GST rate typically ranges between 5% and 18%, depending on various factors, such as material composition, design, and use. Here is a breakdown of the GST rates applied to different types of footwear:
- GST Rate 18% : This rate applies to high-end, branded footwear made of premium materials such as leather or synthetic leather. Formal footwear, boots, and some sports footwear might fall under this category.
- GST Rate 5% : Basic footwear, such as sandals, slippers, and everyday shoes, typically fall under the 5% GST rate. This applies to less expensive footwear, including casual sandals and shoes made from rubber or textile.
2. GST Rate for Gaiters and Related Parts
The GST rate for gaiters, which are worn over shoes or boots for additional protection, generally falls under the 5% tax rate. This rate also applies to other specialised footwear or protective covers designed for specific industrial or sports use.
- HSN Code for Gaiters : Gaiters fall under HSN code 6401, similar to regular footwear, but their GST rate is typically 5%, given their protective nature.
- Parts of Footwear : The GST rate for parts of footwear (e.g., outer soles, insoles, heels) also falls under HSN code 6404 and is taxed at 18%. These parts are considered essential components in the manufacturing of shoes and other footwear items.
Understanding HSN Code for Shoes The HSN code for shoes falls under HSN code 6401 and HSN code 6402 for footwear, depending on the outer sole material and design. The classification under the HSN code for shoes is primarily based on the material of the outer sole and the purpose of the footwear. Here’s a closer look at the shoes HSN code:
- HSN Code 6401: Footwear with outer soles made of rubber, plastics, leather, or composition leather.
- HSN Code 6402 : Footwear with rubber or plastic outer soles made for specific purposes, including sports shoes and sandals.
The shoe HSN code is essential for identifying the tax liability for specific footwear products. Manufacturers and retailers must ensure they use the correct HSN code for shoes to comply with the GST rates.Here are some more HSN codes and GST rates for different types of footwear and GST rates:
| HSN Code | Description | GST Rate |
| 6401 | Waterproof footwear with outer soles and uppers of rubber or plastic | 18% |
| 640110 | Footwear incorporating a protective metal toe-cap | 18% |
| 64011010 | Waterproof footwear with outer soles and uppers of rubber or plastic (with protective metal toe) | 18% |
| 64011090 | Waterproof footwear with outer soles and uppers of rubber or of plastics (other) | 18% |
| 64019110 | Waterproof footwear covering the knee—of rubber | 18% |
| 64019190 | Waterproof footwear covering the knee - other | 18% |
| 640192 | Covering the ankle but not covering the knee | 18% |
| 64019210 | Waterproof footwear covering the ankle but not knee - of rubber | 18% |
| 64019290 | Waterproof footwear covering the ankle but not knee - other | 18% |
| 640199 | Other waterproof footwear | 18% |
| 64019910 | Other waterproof footwear - of rubber | 18% |
| 64019990 | Other waterproof footwear - other | 18% |
| 6402 | Other footwear with outer soles and uppers of rubber or plastics - sports footwear | 18% |
| 640212 | Ski-boots, cross-country ski footwear and snowboard boots | 18% |
| 64021210 | Ski-boots and snowboard boots - of rubber | 18% |
| 64021290 | Ski-boots and snowboard boots - other | 18% |
| 640219 | Other sports footwear | 18% |
| 64021910 | Other sports footwear - of rubber | 18% |
| 64021990 | Other sports footwear - other | 18% |
| 640220 | Footwear with upper straps or thongs assembled to the sole using plugs | 18% |
| 64022010 | Footwear with upper straps assembled by plugs - of rubber | 18% |
| 64022090 | Footwear with upper straps assembled by plugs - other | 18% |
| 64023010 | Footwear incorporating a protective metal toe-cap - of rubber | 18% |
| 64023090 | Footwear incorporating a protective metal toe-cap - other | 18% |
| 640291 | Covering the ankle | 18% |
| 64029110 | Covering the ankle - of rubber | 18% |
| 64029190 | Covering the ankle - other | 18% |
| 640299 | Other footwear | 18% |
| 64029910 | Other footwear - of rubber | 18% |
| 64029990 | Other footwear - other | 18% |
| 6403 | Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather | 18% |
| 64031200 | Ski-boots, cross-country ski footwear and snowboard boots | 18% |
| 640319 | Other sports footwear | 18% |
| 64031910 | Sports footwear with outer soles of leather | 18% |
| 64031920 | Sports footwear with outer soles of rubber | 18% |
| 64031990 | Other sports footwear | 18% |
| 640320 | Footwear with outer soles of leather, and uppers which consist of leather straps | 18% |
| 64032011 | All leather, closed toe footwear for men | 18% |
| 64032012 | All leather, closed toe footwear for women | 18% |
| 64032013 | All leather, closed toe footwear for children | 18% |
| 64032019 | All leather, closed toe footwear - other | 18% |
| 64032021 | All leather, open toe footwear for men | 18% |
| 64032022 | All leather, open toe footwear for women | 18% |
| 64032023 | All leather, open toe footwear for children | 18% |
| 64032029 | All leather, open toe footwear - others | 18% |
| 64032030 | Leather soles with embroidered uppers | 18% |
| 64032040 | Kolapuri chappals and similar footwear | 18% |
| 64032090 | Other footwear with leather straps | 18% |
| 64033000 | Footwear made on a base of wood | 18% |
| 64034000 | Other footwear, incorporating a protective metal toe-cap | 18% |
| 640351 | Covering the ankle | 18% |
| 64035111 | All leather shoes covering ankle for men | 18% |
| 64035112 | All leather shoes covering ankle for women | 18% |
| 64035113 | All leather shoes covering ankle for children | 18% |
| 64035119 | All leather shoes covering ankle - other | 18% |
| 64035190 | Other footwear covering ankle | 18% |
| 640359 | Other footwear with leather soles | 18% |
| 64035910 | Other footwear with leather soles for men | 18% |
| 64035920 | Other footwear with leather soles for women | 18% |
| 64035930 | Other footwear with leather soles for children | 18% |
| 64035990 | Other footwear with leather soles - other | 18% |
| 640391 | Covering the ankle | 18% |
| 64039110 | Leather boots and other footwear with rubber sole | 18% |
| 64039120 | Leather footwear with plastic and synthetic sole | 18% |
| 64039190 | Other leather footwear covering ankle | 18% |
| 640399 | Other leather footwear | 18% |
| 64039910 | Leather sandals with rubber sole | 18% |
| 64039920 | Leather sandals with plastic or synthetic sole | 18% |
| 64039990 | Other leather footwear | 18% |
| 6404 | Footwear with outer soles of rubber, plastics, leather and uppers of textile materials | 18% |
| 640411 | Sports footwear; tennis shoes, basketball shoes, gym shoes, training shoes | 18% |
| 64041110 | Sports footwear with rubber soles | 18% |
| 64041120 | Sports footwear with rubber upper | 18% |
| 64041190 | Other sports footwear | 18% |
| 640419 | Other textile upper footwear | 18% |
| 64041910 | Rubber sole with canvas upper | 18% |
| 64041920 | Rubber sole with leather cloth uppers | 18% |
| 64041990 | Other textile upper footwear | 18% |
| 64042000 | Footwear with outer soles of leather and uppers of textile materials | 18% |
| 6405 | Other footwear | 18% |
| 64051000 | Other footwear with uppers of leather or composition leather | 18% |
| 64052000 | Other footwear with uppers of textile materials | 18% |
| 64059000 | Other footwear | 18% |
| 6406 | Parts of footwear; removable in-soles, heel cushions; gaiters, leggings | 18% |
| 640610 | Uppers and parts thereof | 18% |
| 64061010 | Uppers and parts thereof | 18% |
| 64061020 | Uppers and parts thereof | 18% |
| 64061030 | Uppers and parts thereof | 18% |
| 64061040 | Uppers and parts thereof | 18% |
| 64061090 | Uppers and parts thereof | 18% |
| 640620 | Outer soles and heels, of rubber and plastics | 18% |
| 64062000 | Outer soles and heels, of rubber or plastics | 18% |
| 640690 | Other parts of footwear | 18% |
| 64069010 | Parts of footwear - of wood | 18% |
| 64069020 | Leather parts other than soles | 18% |
| 64069030 | Leather soles | 18% |
| 64069040 | Gaiters, leggings and similar articles | 18% |
| 64069050 | Parts of gaiters, leggings and similar articles | 18% |
| 64069090 | Other parts of footwear | 18% |
| 640699 | Of other materials | 18% |
Impact of GST on Footwear Manufacturers, Retailers, and Consumers
The introduction of GST in India has had a significant impact on footwear manufacturers and retailers. Understanding the GST rate and HSN code for footwear is vital for businesses in this sector to ensure accurate tax calculations and avoid any penalties. For Manufacturers and Retailers
- Input Tax Credit (ITC) : Footwear manufacturers can claim Input Tax Credit (ITC) on the GST paid for raw materials used in the production of footwear. This helps businesses offset the taxes they pay on production costs and reduces the overall tax burden.
- GST on Exported Footwear : Exporters of footwear can avail themselves of a zero-rated GST on exported goods. However, they can claim refunds on the taxes paid on inputs used in the manufacturing process.
- Tax Compliance : Using the correct HSN code is crucial for businesses to ensure tax compliance and avoid penalties. Incorrectly applying the HSN code can result in a higher tax rate or lead to non-compliance with GST regulations.
For Consumers For consumers, the GST rate and HSN code help provide pricing transparency in the footwear market. With a clearer understanding of the GST rates, consumers can make more informed purchasing decisions.
- Footwear Pricing : The GST included in the price of footwear can make the final price slightly higher. However, the 5% GST rate on basic footwear, such as slippers and sandals ensures that prices remain affordable for most consumers.
- Quality and Material Considerations : Consumers should be aware that footwear made from premium materials, such as leather or synthetic leather, may be subject to the 18% GST rate.
Maximising Savings on Footwear Purchases
Whether you're a businessman or a consumer, saving money on footwear purchases can be advantageous for you. Here's how you can go about it: For Consumers
- Buy in Bulk : If you're a wholesaler or buying footwear for resale, purchasing in bulk can help reduce the overall cost of goods, especially with the 5% GST applied to basic footwear. This way, you can enjoy a lower per-unit price, even with the GST rate.
- Look for Discounts and Offers : Retailers and online stores often offer sales or promotional offers, which can help reduce the cost of footwear. Look out for discounts on shoes and other footwear during sales events.
- Consider Local Suppliers : Purchasing footwear from local suppliers can save you money on shipping costs. It also allows you to support local businesses while keeping the price reasonable.
For Businesses
- Claim ITC : As a business owner, claim input tax credit (ITC) for the GST paid on raw materials used in manufacturing footwear. This will help reduce the overall tax burden.
- Negotiate Bulk Purchases : For businesses buying large quantities of footwear for resale, negotiating better prices with suppliers can help minimise the impact of GST on your overall costs.
- Stay Updated on HSN Codes : Ensure that your business uses the correct HSN codes for each type of footwear. Incorrect HSN codes can result in overpayment or underpayment of taxes.
Make Informed Choices While Buying Footwear
When purchasing footwear, it's important to consider the GST rates and the HSN codes applicable to different types of shoes, sandals, and gaiters. This knowledge helps you make better purchasing decisions, avoid unnecessary tax expenses, and plan your budget effectively.For businesses, understanding the correct HSN codes ensures tax compliance and helps in maintaining accurate records. To simplify your GST calculations, you can use our GST Calculator for quick and accurate results.
FAQS - FREQUENTLY ASKED QUESTIONS
What is the HSN code for footwear?
The HSN code for footwear is 6401, but different types of footwear may be classified under specific subcategories based on materials and usage, such as 6402 for sports footwear or 6403 for textile footwear.
What is the GST rate and HSN code for shoes?
The GST rate for shoes generally falls under 5% to 18%, depending on the type of shoe. The HSN code for shoes is 6401, though specific designs and materials may affect the rate.
Can businesses claim Input Tax Credit (ITC) on plastic scrap?
Yes, businesses can claim Input Tax Credit (ITC) on the 18% GST paid for plastic scrap, reducing their overall tax burden.
Are all types of footwear taxed under GST?
Yes, footwear is taxed under GST, with rates varying based on the material and purpose. Basic footwear like slippers and sandals usually attract 5% GST, while premium or formal footwear may be subject to 18% GST.
How does the HSN code for shoes affect GST?
The HSN code for shoes determines the specific GST rate that applies to footwear. Accurate classification under the correct HSN code for shoes ensures that the proper tax rate is applied.
What is the HSN code for gaiters?
Gaiters, a protective wear for shoes or boots, fall under HSN code 6401. The GST rate for gaiters is generally 5%.
What is the HSN code for parts of footwear?
Parts of footwear, such as insoles, soles, and heels, come under HSN code 6404. These parts are taxed at 18% GST.
Are there any exemptions for footwear under GST?
Footwear under a certain price range (e.g., less than ₹500) may have lower GST rates (5%). However, there are no widespread exemptions, and rates are largely determined by the type of footwear.
Is there a difference in GST rates for casual vs. formal footwear?
Yes, casual footwear like slippers may attract 5% GST, while formal footwear made from materials like leather may fall under the 18% GST rate.
Can retailers apply for GST refunds on footwear exports?
Yes, exporters of footwear are eligible for zero-rated GST on exports, meaning no GST is charged on exports, and they can claim refunds on taxes paid on inputs.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
