Footwear uppers made of textile materials are among the most common types of shoes we see every day. They are made from various textile materials such as cotton, silk, wool, synthetic fibers, and more. These materials are not only comfortable and breathable but also look good, which makes them a popular choice for many people.
But as a small or medium business owner dealing with the manufacture or sale of footwear uppers of textile materials, it is important to understand the GST rates and HSN code of this product. This article aims to provide you with a comprehensive understanding of both aspects.
GST stands for Goods and Services Tax, which is a tax levied on the supply of goods and services in India. It is an indirect tax that has replaced various other taxes such as Central Excise Duty, Value Added Tax (VAT), and Service Tax.
GST is a consumption-based tax, which means that it is levied on the value addition at each stage of the supply chain. This system ensures that the tax is paid only on the value added to the product or service and not on the entire value of the product.
The GST rates for footwear uppers of textile materials fall under the 18% tax slab. This rate is applicable to all types of footwear uppers made of textile materials, regardless of their composition, size, or intended use.
It is important to note that GST is levied on the transaction value of the product, which includes the cost of production, packaging, and any other expenses incurred during the supply chain.
HSN stands for Harmonized System of Nomenclature, which is an internationally accepted system of names and numbers used to classify goods in trade. The HSN code is a unique six-digit code assigned to each product under this system. It is used to determine the applicable tax rate and other trade-related information for the product.
The HSN code for footwear uppers of textile materials is 6404. This code is used to classify all types of footwear uppers made of textile materials, including those made of rubber, plastic, or other materials.
The HSN code 6404 has been further divided into several sub-headings, which provide a more detailed classification of the products. These sub-headings include:
1. 6404.11 - Sports footwear uppers
2. 6404.19 - Other footwear uppers
Understanding the GST rates and HSN code for footwear uppers of textile materials is essential for any small or medium business owner dealing with the manufacture or sale of this product. The GST rate of 18% and HSN code 6404 apply to all types of footwear uppers made of textile materials.
By keeping these details in mind, you can ensure that you comply with the tax laws and regulations in India, and avoid any penalties or legal issues.
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