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February 21, 2025

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Footwear Uppers of Leather GST Rates and HSN Code 6403 Insights

The process of taxation as shaped by the Goods and Services Tax (GST) is the same across the country and very transparent and evident. Primarily, it was nothing short of a nightmare before GST was introduced and presented since the taxes varied a lot from state to state and were very complicated and complex. One tax has thus been made to apply to all states. The HSN, otherwise known as the Harmonized System of Nomenclature, is important in this tax system. The HSN code is applied to every good, and the tax associated with that good can thus be determined.

For instance, taking HSN Code 6403, this HSN code specifically means shoes made of leather. GST rates associated with this variety are very important for the different stakeholders in the industry. These rates must be very clear and precise to manufacturers to enable and help them to price their products accordingly. Importers need to learn and comprehend these taxes for compliance and punishment mitigation purposes. Retailers and dealers have the benefit of having this knowledge of the GST rates to design and schedule their prices and control their stock and supply.

This article goes on to discuss and examine in-depth GST rates and HSN classifications as well as compliance matters regarding leather uppers. By understanding all these aspects, one can tax efficiently and remain compliant. Most importantly, this knowledge will guarantee a competitive edge and profitable and promising operations.

What is HSN Code 6403?

All kinds of footwear uppers made of leather are covered under HSN Code 6403. This category would include shoes, boots, and similar items of which the upper material is primarily made of leather.

Common Products Under HSN Code 6403:

1. Formal leather shoes

2. Safety shoes with leather uppers

3. Casual leather footwear

4. Leather boots

GST Rates for HSN Code 6403

Below is a structured breakdown:

HSN Code	Footwear Type	GST Rate
6403	Leather footwear uppers	18%
6403	Safety shoes (leather)	12%
6403	Leather boots	18%
6403	Other leather-based footwear	18%

Additional HSN Codes for Related Footwear

HSN Code	Footwear Type	GST Rate
6401	Safety shoes	12%
6402	Synthetic footwear	18%
6405	Rubber or Plastic footwear	18%

GST compliance and Tax issues for the show business

Every business operating in manufacturing, selling, or importing footwear must now comply with GST for smooth-running operations. Here are the recurring items:

1. Create your Input Tax Credit (ITC)

Raw materials include leather, soles, adhesives, and even other accessories - businesses can claim a refund against GST paid for such items.

ITC lowers tax liability as well as improves your cash flows.

2. Requirements of invoices and documentation

Invoices should carry the right HSN code (6403).

The details of purchases and sales should be maintained as a record to avoid compliance issues.

3. GST Return Filing

Footwear retailers ought to file GSTR-1 and GSTR-3B (monthly or quarterly as suitable based on their turnover).

GST returns should carry the appropriate classification under HSN Code 6403.

4. Export and import considerations

Export of leather footwear is claimed rebate as they are zero-rated. So, exporters are entitled to rebate claims.

Imports of footwear under HSN 6403 are charged customs duties along with GST.

Difference in Safety Shoe and Leather Shoe Under GST

Safety Shoes (HSN 6403 vs. 6401)

Safety shoes of leather fall under HSN 6403 (drawing 12% GST).

Synthetic safety shoes are classified under HSN 6401 (again with 12% GST).

A few of these safety shoes would have a relaxation in tax slab depending on their usage in factories and industries.

Leather Shoes (HSN 6403 vs. 6405)

Leather on the type of footwear which is identified in 6403 for this purpose attracts a tax of 18 percent whereas shoes having no leather component, consisting of shoes made of rubber and plastic are covered under HSN 6405, they too attract the same percentage of tax application, that of 18 percent.

Benefits of Proper Category of Footwear Under HSN Code 6403

Correct classification under the HSN Code has many advantages, such as:

1. It avoids any penalties due to misclassification of tax.

2. Supplies for an accurate calculation and filing of GST.

3. It helps in the faster and easier claiming of Input Tax Credit to the business.

4. Adequate compliance with CBIC guidelines is maintained.

Conclusion

Footwear uppers made of leather come under the ambit of HSN Code 6403 and shall attract Goods and Services Tax (GST) at 18%. However, the exception is safety shoes, which are intended to be taxed at a lesser rate of 12%. Very importantly, businesses should accurately classify and categorize their products as this would help open new doors and opportunities for tax compliance and claiming Input Tax Credits besides avoiding and dodging probable tax liabilities.

All knowledge of taxing rules and authorities can define how a corporate entity would enjoy tax benefits and bigger profits to reinvest in its operations. Understanding the right tax codes and rates applicable to the products they deal with, streamlines operations easily. Hence, such knowledge of HSN Code 6403 and its GST implications will lead to better and more profitable decision-making and greater financial and economic well-being for all players in the leather footwear industry. For more details, visit HSN Code & GST on Footwear (Rubber & Plastic)

FAQs

1. What is the GST associated with leather footwear under HSN 6403?

Under HSN Code 6403, leather shoes belong to the GST category of 18%.

2. Are safety shoes charged with GST?

Safety shoes are accepted by HSN Code 6403 (12% GST) only when it is made from leather upper.

3. Can manufacturers and traders redeem ITC on shoes under HSN 6403 ?

Yes, businesses can claim ITC for the GST paid to purchase raw materials.

4. Does any particular leather footwear have an exemption or lower GST rate?

Yes, certain traditional leather footwear like Kolhapuri chappals and other handmade indigenous footwear are subjected to 5% GST as per the classification and notification by the GST Council.