Apparel Clothing Leather Accessories - GST Rates & HSN Code 4203

The Goods and Services Tax (GST) is an indirect tax imposed on goods and services in India. It is a comprehensive tax that replaces all other indirect taxes, such as VAT, Service Tax, and Excise Duty. The implementation of GST has brought a lot of changes in the taxation system, including the apparel and clothing leather accessories industry.

GST Rates for Apparel and Clothing Leather Accessories

As per the GST Council, the apparel and clothing leather accessories industry comes under the 5% GST slab. The 5% GST rate is applicable to all categories of apparels and clothing leather accessories, including readymade garments, woven and non-woven fabrics, and leather accessories such as belts, wallets, and bags. However, the GST rate may vary for certain products based on their value.

HSN Code for Apparel and Clothing Leather Accessories

HSN stands for Harmonized System of Nomenclature, which is a code system used to classify goods and services for taxation purposes. The HSN code for the apparel and clothing leather accessories industry is 4203. This code covers all types of leather goods, including bags, belts, and wallets. It also covers all types of clothing accessories such as scarves, hats, and gloves.

Impact of GST on Apparel and Clothing Leather Accessories Industry

The implementation of GST has had a significant impact on the apparel and clothing leather accessories industry in India. Some of the notable impacts are:

1. Reduction in the overall tax rate on apparel and clothing leather accessories from the previous tax regime

2. Elimination of cascading effect of taxes that were levied in the previous regime

3. Increased compliance and transparency in the industry due to the unified tax system

4. Simplification of the indirect tax system which has made it easier for businesses to comply with the tax requirements

Conclusion

The implementation of GST has brought a lot of changes in the taxation system, and the apparel and clothing leather accessories industry is not an exception. The industry has benefited from the reduction in the overall tax rate and the elimination of cascading effect of taxes. The GST system has also made it easier for businesses to comply with the tax requirements, which has increased compliance and transparency in the industry. The HSN code for the industry is 4203, which covers all types of leather goods and clothing accessories.