INDIA: Uniform 12% GST Tax Introduced for Textile and Footwear Sectors
04 October 2021
A flat rate of Goods and Services Tax (GST) of 12% is to be introduced for both footwear and textiles (except for certain cotton products) as of 1 January next year.
This will replace the current complex system that sees various different textile materials taxed at a rate between 5% and 18%. It also tackles the issue of certain inputs being charged at a different rate to finished products, an inconsistency that obliged manufacturers to seek tax credits in order to resolve any excessive liability. The move resolves a similar problem in the footwear sector, where products had again been taxed on a sliding 5-18% scale depending on their retail value.
- Garments, Textiles & Accessories
- Other Asian Countries