GST on footwear: 5% up to ₹2,500 a pair, 18% above
The rate depends on what one pair is sold for. Here is the rule, where shops slip, and examples you can check on a calculator.
In short: from 22 September 2025, footwear with a sale value up to ₹2,500 per pair is taxed at 5%, and footwear above ₹2,500 per pair at 18%. The rate is decided for each pair, on its value after discount and before GST.
The rule
Footwear falls under Chapter 64 of the GST tariff. After the 56th GST Council meeting in September 2025 the 12% slab was removed, and the lower rate for footwear became 5% with the limit raised to ₹2,500 per pair. Before that, from 1 January 2022, the limit was ₹1,000 a pair with 12% below it and 18% above.
| Sale value of one pair | GST | Within the state | To another state |
|---|---|---|---|
| Up to ₹2,500 | 5% | CGST 2.5% + SGST 2.5% | IGST 5% |
| Above ₹2,500 | 18% | CGST 9% + SGST 9% | IGST 18% |
Three things that decide the rate
- Per pair, not per bill. Two pairs at ₹2,000 each are both at 5%, even though the bill is ₹4,000. One bill can carry pairs at 5% and pairs at 18%.
- Sale value, not MRP. The limit is checked against what you actually charge for the pair, not the price printed on the box.
- After discount. A discount given on the bill reduces the sale value. A pair that is above the limit at full price can fall into 5% when sold at a discount.
Example 1: price before GST
| Pair | Sale value | Rate | CGST | SGST | Customer pays |
|---|---|---|---|---|---|
| Sandal | ₹1,800.00 | 5% | ₹45.00 | ₹45.00 | ₹1,890.00 |
| Leather shoe | ₹3,200.00 | 18% | ₹288.00 | ₹288.00 | ₹3,776.00 |
Example 2: MRP that includes GST
Most shops sell at an MRP that already includes GST. Then the tax is taken out of the price, not added to it.
₹2,625 inclusive = ₹2,500 + 5%. So ₹2,625 is the highest inclusive price that is still at 5%.
| Price with GST | Rate | Sale value | CGST | SGST |
|---|---|---|---|---|
| ₹999.00 | 5% | ₹951.42 | ₹23.79 | ₹23.79 |
| ₹2,625.00 | 5% | ₹2,500.00 | ₹62.50 | ₹62.50 |
| ₹3,499.00 | 18% | ₹2,965.26 | ₹266.87 | ₹266.87 |
Example 3: a discount that moves a pair into 5%
A pair has an MRP of ₹3,499 including GST. Compare three ways of selling it:
| Sold at | Customer pays | Rate | GST | Shop keeps |
|---|---|---|---|---|
| Full MRP | ₹3,499.00 | 18% | ₹533.74 | ₹2,965.26 |
| 20% off | ₹2,799.20 | 18% | ₹427.00 | ₹2,372.20 |
| 25% off | ₹2,624.25 | 5% | ₹124.96 | ₹2,499.29 |
At 25% off the customer pays ₹174.95 less than at 20% off, and the shop keeps ₹127.09 more — because the pair has moved into 5%.
The gap between ₹2,625 and ₹2,950
An inclusive price in this band is awkward. Taken at 5%, its value comes to more than ₹2,500, so 5% does not fit. Taken at 18%, its value comes to less than ₹2,500. Padam bills such a pair at 18% and shows a hint: price it at ₹2,625 and the customer pays less while you keep more. If you sell many pairs in this band, ask your CA how to treat them and consider repricing.
Check any price with the footwear GST calculator.
Returns, exchanges and old bills
A return or credit note follows the rate of the original bill. A pair sold before 22 September 2025 at 12% is refunded at 12%, even though the same pair would be billed at 5% today. See size exchange and credit notes under GST.
Accessories
Polish, insoles, bags and belts are not footwear: each has its own HSN code and GST rate. Do not bill them at the footwear rate just because they are sold with the pair.
General information, not tax or legal advice. Last reviewed 16 November 2026. Rates and rules change — confirm with your chartered accountant before you act on it.
The right slab on every pair
Padam decides 5% or 18% per pair after discount, keeps the rule as a dated setting, and prints a slab-wise tax summary.