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.

GST Return filing for Footwear

After registering under GST, you need to file monthly or quarterly returns depending on your turnover and type of registration. The main returns that you need to file are:

• GSTR-1: This return contains the details of your outward supplies of goods or services or both. You need to file this return by the 11th of the next month if your turnover exceeds Rs. 1.5 crore in a financial year, or by the end of the next month if your turnover is up to Rs. 1.5 crore in a financial year.
• GSTR-3B: This return contains the summary of your inward and outward supplies of goods or services or both and the payment of tax. You need to file this return by the 20th of the next month.
• GSTR-9: This return is the annual return that consolidates all the monthly or quarterly returns filed during a financial year. You need to file this return by December 31st of the next financial year.

Also Read: How to file GST returns online?

Conditions to Claim GST Input Tax Credit

GST ITC stands for Goods and Services Tax Input Tax Credit. It is the credit that you can claim for the tax paid on your purchases of goods or services or both that are used or intended to be used in the course or furtherance of your business. To claim GST ITC, you need to fulfill the following conditions:

• You must have a valid tax invoice or debit note issued by a registered supplier.
• You must have received the goods or services or both.
• You must have paid the tax charged on such goods or services or both to the government.
• You must have filed your GSTR-3B return.
• The supplier must have filed their GSTR-1 return and declared your details as the recipient of such goods or services or both.
• The goods or services or both must be used for business purposes and not for personal consumption or exempt supplies.

Also Read: Input Tax Credit Under GST

When GST become Payable for Footwear?

GST becomes payable for footwear at the time of supply of goods or services or both. The time of supply is determined by applying the following rules:

• For goods, the time of supply is the earlier of:

The date of issue of invoice by the supplier or the last date on which he is required to issue the invoice.

The date on which the supplier receives the payment from the recipient.

• For services, the time of supply is the earlier of:

The date of issue of invoice by the supplier or the last date

Conclusion

Footwear is an important commodity that is subject to GST. The GST rate on footwear has been revised from January 1, 2022, to 12% for all footwear, regardless of the sale value. If you are a footwear supplier or service provider, you need to register under GST, file your returns, and pay your tax on time. You can also claim GST ITC for the tax paid on your purchases of footwear or related services, subject to certain conditions. We hope this blog post has helped you understand the GST implications on footwear.

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