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Published on:

December 15, 2024

Viraaj Vashishth

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HSN Code & GST on Footwear (Rubber & Plastic)

The Good Services Tax, that has been implemented in India has eased the tax woe of many industries as it has provided all businesses in India with one common tax code. Increased sales of footwear especially rubber and plastic footwear has seen categorization of such footwear under certain HSN codes. Knowledge on these codes and on the range of GST that applies on footwear is an important factor for both vendors and customers. In this article, we focus on HSN codes, rates of GST on Footwear, and their implications on the business selling the footwears.

HSN Codes And the Rate Of GST on Footwear

The HSN codes are integrated within the GST system. By using HSN codes, it makes it easier to classify goods according to their sectors. Footwear items made of rubber or plastic fall under distinct HSN codes, whereby each of them is subject to a different rate of GST depending on the type of product and its value. Such categorization enables business firms to enhance their tax filings and, therefore, be in compliance with the domestic tax laws of India. For those working in the footwear business, understanding the footwear GST rate offers assistance in setting appropriate prices, which in turn enhances compliance and tax planning.

Understanding HSN Codes for Footwear GST Rate (Rubber & Plastic)

The harmonized system of nomenclature (HSN) codes are universal product nomenclature codes that are a systematic classification of goods by name as well as number. It helps organize GST rates and complying business with consistency in India.

HSN Codes for Rubber and Plastic Footwear

HSN Code	Description	Rate (%)	Effective Date	Rate Revision
6402	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics - Sports Footwear	5/18	01/07/2017	5% 18%
640212	Ski-Boots, Cross-Country Ski Footwear And Snowboard Boots	5/18	01/07/2017	5% 18%
64021210	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Sports Footwear : Ski-Boots, Cross-Country Ski Footwear And Snowboard Boots: Of Rubber	5/18	01/07/2017	5% 18%
64021290	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Sports Footwear : Ski-Boots, Cross-Country Ski Footwear And Snowboard Boots: Other	5/18	01/07/2017	5% 18%
640219	Other	5/18	01/07/2017	5% 18%
64021910	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Sports Footwear : Other : Of Rubber	5/18	01/07/2017	5% 18%
64021990	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Sports Footwear : Other : Other	5/18	01/07/2017	5% 18%
640220	Footwear With Upper Straps Or Thongs Assembled To The Sole By Means Of Plugs	5/18	01/07/2017	5% 18%
64022010	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Footwear With Upper Straps Or Thongs Assembled To The Sole By Means Of Plugs: Of Rubber	5/18	01/07/2017	5% 18%
64022090	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Footwear With Upper Straps Or Thongs Assembled To The Sole By Means Of Plugs: Other	5/18	01/07/2017	5% 18%
64023010	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Other Footwear, Incorporating A Protective Metal Toe-Cap: Of Rubber	5/18	01/07/2017	5% 18%
64023090	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Other Footwear, Incorporating A Protective Metal Toe-Cap: Other	5/18	01/07/2017	5% 18%
640291	Covering The Ankle	5/18	01/07/2017	5% 18%
64029110	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Other Footwear :Covering The Ankle:Of Rubber	5/18	01/07/2017	5% 18%
64029190	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Other Footwear :Covering The Ankle:Other	5/18	01/07/2017	5% 18%
640299	Other	5/18	01/07/2017	5% 18%
64029910	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Other Footwear :Other: Of Rubber	5/18	01/07/2017	5% 18%
64029990	Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics Other Footwear :Other: Other	5/18	01/07/2017	5% 18%

Comparison of GST Rates on Footwear (Pre-GST vs. Post-GST)

Prior to the introduction of GST, footwear was taxed at a range of taxes such as VAT, Central Excise Duty and other cesses. These taxes were applied at the state level and often resulted in higher costs for products in some states compared to others.

Tax Type	Pre-GST Rate Range	Post-GST (Unified Rate)
VAT	5% - 15%	5% or 12%
Central Excise Duty	6%	-
CST	2%	-

Employment Generating Sector After all, the footwear industry offers software development, shoes, slippers and sandals in the growing business — GST on Footwear is one of the most rapidly growing 7% to 12% business sectors at the moment. This led to the removal of the cascading tax effect, which enabled rubber and plastic footwear to be made available to the consumers across the nation.

You may also Check: Wooden Furniture: 9403 HSN Code and GST Rate

Practical Examples and Case Studies

Illustrative Examples

We evaluate the two aforementioned examples by examining how GST rates differ based on various types of footwear:

Type of Footwear	Selling Price (Rs.)	HSN Code	GST Rate (%)	GST Amount (Rs.)	Total Price (Rs.)
Rubber Slippers	800	6401	5%	40	840
Sports Shoes	1200	6402	12%	144	1344
Casual Sandals (Plastic)	500	6402	5%	25	525

In this regard, both rubber slippers and casual sandals are charged a tax of 5% because of their being cheap around 1000, while the premium sports shoe attracts a 12% GST because the shoe is priced over 1000.

Case Study:

Look at the case of a small-scale business which deals in the production of rubber slippers it sells for 500 Rs. However because of the 5% GST slab, the business is able to get a lower tax amount and thus prices below the market level. Further, The Composition Scheme brings about savings to tax because it reduces the number of GST filings, vital for small-scaled entities.

Conclusion

It is also important to understand the HSN codes for GST on rubber and plastic footwear in order to be compliant with the provisions of the industry. It is fair to say that tax rates depend on the value of the product and this ensures that even basic foot wears’ affordability is guaranteed and premiumness on shoes ensures fair taxation. HSN classification knowledge also enables a business to achieve compliance, maintain price transparency and run its operations with less friction.

FAQs

1. What is the GST for the footwear above 1000 Rs?

Footwear costing less than 1000 is subject to a 5% GST rate.

2. What is the method developed that explains GST on shoes?

GST on shoes is determined by the cost of the footwear and the HSN, where the GST rate is either 5% or 12%.

3. What are the types and HSN codes of soles and shoes made of plastics?

Shoes made of plastics are Shoes/ sandals and should be classified with HSN 6402.

4. Is GST applicable on rubber footwear?

Yes. GST is applicable on rubber footwear. It may be either 5 percent or 12 percent depending upon the price.

5. What is the GST rate for shoes that cost more than rupees one thousand?

Shoes that are priced more than rupees one thousand has a GST rate of 12 percent.

6. Where do I look for the shoes HSN code in the context of GST returns?

The shoes HSN code can be often traced out based on the type of material as well as the footprint type of the footwear style such as HSN code 6401 for Waterproof footwear.

7. Is the GST on slippers an exemption to the rule?

Yes, GST is on slippers as well, in case the price is below Rs.1000 then the GST is usually 5 percent, otherwise the GST is higher.

8. Are rubber shoes stitched differently as regards to the GST slab?

Rubber shoes as they are mostly game footwear have a stitched material based price slab having a general 5 percent or 12 percent GST slab.

9. What number should be assigned for HSN with respect to plastic sandals?

Plastic sandals are classified as HSN number 6402 for the purpose of GST.

10. What is the applicable GST rate for footwear which is synthetic material based?

Synthetic material based footwear are of 12 percent GST rate if above rupees one thousand in price.

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