Buying Shoes This Festive Season? Check New GST Rules to Save Big on Your Bill

The festive shopping season is here, and for many people, buying a new pair of shoes is at the top of their wish list. But before you head to the store or order online, there’s one important detail you shouldn’t miss: the new GST rules on footwear. A small difference in shoe price could have a huge impact on how much tax you pay—and how much money you save.

New GST Slabs Explained

Under the revised Goods and Services Tax (GST) structure, products are taxed in three categories:

• 5% GST – for essential goods

• 18% GST – for regular or semi-luxury items

• 40% GST – for sin goods such as tobacco and similar products

When it comes to shoes, the GST Council has revised the rate structure to make footwear more affordable for the general public.

• Shoes priced up to ₹2,500 now attract only 5% GST.

• Shoes priced above ₹2,500 fall into the 18% GST bracket.

This means just a ₹1 difference in the price of shoes can drastically change the final amount you pay.

A Small Price Difference, A Big Tax Impact

Let’s understand this with a simple example.

• If you buy a pair of shoes for ₹2,500, GST at 5% will be just ₹125. Your final bill will be ₹2,625.

• If you buy a pair for ₹2,501, GST at 18% will be ₹450.18. This brings your final bill to ₹2,951.18.

In this case, paying just ₹1 more on the base price leads to an extra ₹326.18 on your bill. This sharp difference highlights why buyers should be careful when selecting footwear in the festive season.

Imported vs. Indian-Made Footwear

Most branded and imported shoes generally cost more than ₹2,500. This means they automatically fall under the 18% GST category, reducing your chances of saving on tax.

On the other hand, Indian-made footwear, especially those from local brands, often comes with a lower price tag and can fall under the 5% GST slab. As a result, consumers can save significantly if they opt for domestically manufactured shoes.

GST Relief for the Leather and Footwear Industry

The government has also introduced some relief measures for the leather and footwear industry to boost local production and make products more affordable:

• Shamois leather, composition leather, and tanned/crusted leather now attract only 5% GST, down from 12%.

• Job work related to hides, skins, and leather processing has also been reduced from 12% to 5%.

These changes are aimed at reducing the financial burden on small and medium manufacturers, encouraging local production, and making footwear more accessible to consumers.

Why This Matters for Festive Shoppers

With discounts and festive offers already flooding the market, consumers have an additional opportunity to save more by simply being aware of GST slabs. A pair of shoes priced just under ₹2,500 can help you keep your bill much lighter compared to those priced even slightly above the limit.

For smart shoppers, this means checking the Maximum Retail Price (MRP) carefully before making a purchase.

Final Word

This festive season, don’t just look for discounts—pay attention to GST rules on footwear as well. A little awareness can lead to big savings, especially when buying multiple pairs.

So, whether you are shopping online or offline, keep the ₹2,500 price threshold in mind. Choosing wisely can make your festive purchases more pocket-friendly while ensuring you don’t pay extra tax unnecessarily.

✅ Bottom Line: When buying shoes this season, remember the golden number—₹2,500. Stay within this limit and enjoy not only festive discounts but also significant tax savings under the new GST rules