Uniform GST on footwear will facilitate trade, say government sources

05 January 2022, Mumbai:

The uniform 12 per cent GST rate on footwear will help facilitate trade and promote ease of doing business, according to government sources. Doing away with the inverted duty structure will actually reduce costs and prices for the common man, they added.

According to sources, the dual rates of 5 per cent on footwear priced below Rs 1,000 and 12 per cent on footwear above Rs 1,000 were creating operational and interpretational difficulties for the trade and industry. The lower rate of 5 per cent was resulting in inversion of duty as most of the raw materials used for manufacture of footwear attract GST of 18 per cent

They also termed comments that the GST Council has deferred implementation of increase in rates on textiles by a month as factually incorrect and misleading The Congress party had said the decision has not been withdrawn and the increase will be brought back after elections.

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