GST on Shoes: Tax Rates, HSN Code, Calculation and Impact

Have you ever thought about how GST on shoes affects your pockets? GST on footwear has been simplified after the 56th GST Council meeting, with the threshold for concessional GST moved up from Rs. 1,000 to Rs. 2,500 per pair, making it easier for both consumers and businesses to understand and benefit from the new rates.

Key Takeaways

• Effective 22nd September 2025, footwear with a sale value up to Rs. 2,500 per pair will attract a reduced GST rate of 5% 
• Footwear above Rs. 2,500 per pair will continue to attract the 18% GST rate, with no change to this higher-tier bracket

GST Rates on Shoes

HSN Codes for Footwear

The government uses an HSN (Harmonised System of Nomenclature) to properly enforce the GST. For footwear, once a product is classified under an HSN, retrieving the latest tax rates and other compliance information is easier. 

Here’s a list of the popular footwear HSN codes and the GST rates applicable to them. Please note that these are the broader HSN codes. There are subcategories to these HSN codes to list all types of footwear depending on their categories.

SAC or Service Accounting Code is a number that categorises services related to footwear. These services can include repairs, alterations, upgrades and maintenance. The SAC for footwear repair is 9987. The GST on footwear repairs is charged under this SAC at 18%.

Calculation of GST on Shoes

Scenario 1: 
Shoes priced at Rs. 2,000
GST rate: 5%
GST amount: Rs. 2,000 × 5% = Rs. 100
Total cost: Rs. 2,000 + Rs. 100 = Rs. 2,100

Scenario 2: 
Shoes priced at Rs. 3,000
GST rate: 18%
GST amount: Rs. 3,000 × 18% = Rs. 540
Total cost: Rs. 3,000 + Rs. 540 = Rs. 3,540

GST Impact on the Footwear Industry

• Budget footwear is now cheaper and more accessible, likely increasing demand among price-sensitive consumers.​
• Luxury footwear retains the higher GST slab, keeping premium products more expensive.
• Manufacturers and retailers gain clarity, reducing pricing confusion and compliance burden

How can Footwear Businesses Claim Input Tax Credit (ITC)?

• Businesses must ensure GST registration and source inputs from registered suppliers.​
• File accurate claims via GSTR-3B and reconcile with GSTR-2B for purchases used strictly for business purposes.

Understanding the impact of GST on footwear is important for both consumers and businesses. The new GST structure post-56th Council meeting makes the footwear industry simpler and more consumer-friendly, with a clear threshold and uniform rates for budget and premium categories.