8 June 2017
INDIA: Tax Rates for Textiles, Footwear and Gold Announced
The relevant tiers for the textiles and footwear sectors under the terms of the incoming Goods and Services Tax (GST), effective 1 July, have now been announced. This has seen items that fall within the remit of these two sectors allocated to bands ranging from 5-18%, depending on their value and perceived luxury factor.
This new announcement comes on top of the 1,200 individual goods and services that were previously allocated across the GST’s four tiers. It has also been revealed that gold and jewellery items will be taxed at a special rate of 3%.
A brief guide to the designated tax bands for select textile and footwear items is provided in the table below. The full list of all the newly-added goods can be accessed here, with the full list of the previously announced items available here. The full list of services can be accessed here.
|5%||Cotton; natural fibre and yarn; readymade apparel priced at INR1,000 (US$16) or less; footwear priced at INR500 (US$8) or less|
|12%||Readymade apparel priced above INR1,000 (US$16)|
|18%||Man-made fibre and yarn; Footwear priced above INR500 (US$8)|