HSN Code for Footwear and GST Rate: The Rs 2,500 Per Pair Test

Footwear sits in HSN chapter 64, in headings 6401 to 6406, sorted by what the sole and the upper are made of. From 22 September 2025, GST on footwear is 5% where the sale value is not more than Rs 2,500 per pair and 18% where it is more. The material picks the code. The price picks the rate.

What changed in September 2025?

Before the change, footwear had two slabs and the cheaper pairs paid 12%. The GST Council, at its 56th meeting, recommended moving footwear of sale value up to Rs 2,500 per pair from 12% to 5%, and keeping footwear above that value at 18%. The PIB press release of 3 September 2025 lists both entries and gives 22 September 2025 as the date the new goods rates started.

The rate notification dated 17 September 2025 carries this out. In the compiled copy we read, the 5% schedule has one entry for all of chapter 64: footwear of sale value not exceeding Rs 2,500 per pair. The 18% schedule lists headings 6401 to 6406 one by one. The amendment of 27 October 2026 that we read deals with fertilisers and tyres, not footwear, and the press release on the 57th Council meeting of 8 October 2026 lists no change for footwear.

Which heading for which shoe?

Ask two questions. What is the upper made of? What is the outer sole made of? The descriptions below are from the HSN directory on the GST portal.

Note that the HSN code does not change the rate here. A leather shoe and a plastic slipper both pay 5% up to Rs 2,500 a pair. You still need the right heading, because it goes on your invoice and into the HSN summary of your GSTR-1, which is Table 12. For how many digits you must show, see HSN digits required in GSTR-1.

A worked example

You sell sports shoes under heading 6404 from Jaipur.

Pair A is priced at Rs 1,400 before tax and goes to a buyer in Jaipur. The value is below Rs 2,500, so the rate is 5%. You charge CGST of Rs 35 and SGST of Rs 35, and the buyer pays Rs 1,470.

Pair B is priced at Rs 3,000 before tax and goes to a buyer in Pune. The value is above Rs 2,500, so the rate is 18%. You charge IGST of Rs 540, and the buyer pays Rs 3,540.

Now the tricky one. Pair C is listed on a marketplace at Rs 2,699, with tax included. If you apply 5%, the value before tax is about Rs 2,570, which is above the limit, so 5% does not fit. If you apply 18%, the value before tax is about Rs 2,287, which is below the limit, so 18% does not fit either. Any price including tax between about Rs 2,625 and Rs 2,950 runs into this loop. The notification does not settle it. Take a view with a tax expert before you price inside that band, or price outside it.

The mistake sellers usually make

The first mistake is fixing one rate for a product in the listing and forgetting it. Marketplace prices move with sales, coupons and price matching. A pair listed at Rs 2,799 before tax drops to 5% the day a discount on the invoice takes it to Rs 2,450. A pair at Rs 2,300 moves to 18% if you raise the price to Rs 2,600. Look at the value on each invoice, not the price you started with.

The second is calling synthetic leather "leather". Uppers of PU or "vegan leather" are usually treated as plastics, which points to 6402 rather than 6403. The rate is the same, but a wrong heading shows up as a mismatch in your HSN summary and can draw a question.

The third is packs. If you sell two pairs for Rs 4,000, is that one sale of Rs 4,000 or two pairs of Rs 2,000 each? The entry speaks of value per pair. Many sellers divide the pack price by the number of pairs, but we did not find an official clarification on this. Settle it with advice and apply it the same way every time.

The last is the old rate. Listings made before 22 September 2025 may still show 12%. That slab is gone for footwear.

What about polish, laces and parts?

Shoe polish and creams are under heading 3405, which is in the 18% schedule. Parts such as insoles and heel cushions are under heading 6406, which the 18% schedule lists. The 5% entry covers chapter 64 footwear by value per pair, and whether a part sold alone can use it is not clear from the text. If you sell insoles in volume, ask a tax expert which entry fits before you choose 5%.

How much does a wrong rate cost?

Say you sold 300 pairs at Rs 2,800 each before tax at 5% when 18% applied. The tax short paid is 13% of Rs 8,40,000, which is Rs 1,09,200. You cannot recover that from buyers after the sale, so it comes out of your margin, with interest added. For a small footwear seller that can be a whole quarter's profit. A check of your rate on each price band once a month costs far less.

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