The leather export body seeks cut in GST rate on footwear to 12%

Last Updated at: May 18, 2020
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The leather export body seeks cut in GST rate on footwear to 12%
Currently, exports of leather and its products stand at $6 billion. The Council for Leather Exports (CLE) has sought reduction of Goods and Service Tax (GST) rate to 12 per on footwear priced above ₹1,000, to boost manufacturing and exports.

HIGHLIGHTS:

  • CLE seeks cut in GST rate on footwear to 12%
  • India’s leather export and its product stand at $6 billion

Leather exporters in the country seek cut in GST rate to 12% on footwear priced above Rs1000 to boost manufacturing and export of domestic goods.

Leather exporters in India are looking forward to get a cut of 12% on the GST of footwear products which are over Rs. 1,000. It is cited that this will boost manufacturing as well as export on domestic goods. Notably, the current GST rate of footwear products is 18%. it is said that the GST rate cut will be beneficial in many ways. It means that the GST rate for shoe is also the same.

Council for Leather Exports (CLE) has sought this Goods & Service Tax rate reduction at a pre-budget meeting chaired by Finance Minister Ms.Nirmala Sitharaman.

This sector holds huge potential both for manufacturing and exports and at the same time footwear is not a luxury item, so Council for Leather Exports urge the government to reduce the GST rate on footwear or shoe from 18% to 12%.

Get IEC code for your business

GST rate on footwear worth up to Rs1000 was reduced to five per cent while those above Rs1000 sill at 18%.

Currently, our export of leather and its products stands at $6 billion. Europe and the United States (U.S.) are the major export destination.

As the sector employs about 42 lakh people combining both small and big industries, the GST rate cut will induce more domestic job opportunities and earn more foreign exchange.

Last year, the commerce ministry approved Rs2,600-crore package for the leather industry in a move aimed at increasing employment and investment in the sector. It package came with the promise of tax and non-tax incentives, jobs to 324,000 people in the industry over the next three years. It includes enhanced skill-development and technical up gradation.

When can the taxpayer claim refund from electronic cash ledger?

GST It is possible to claim a refund when return associated liabilities for tax period is discharged. The electronic cash ledger approved the refund. Understand the procedure for GST registration and GST returns here.

Is it mandatory to register under MSME?

MSME Registration is voluntary. If you register your enterprise, there will be various benefits for your enterprise under MSME schemes. More on Income Tax Return Filing.

What is Form 26AS?

The Income-tax department prepares a form for every individual who pays tax. It contains certain details like TDS, TCS, self-assessment tax details and refund details. Learn more about ISO Certification.

The cost for this?

Before starting the certification audits, you need to pay a certain sum for the initial certificate. After getting certified, you have to pay to a surveillance audit. More info on NGO Registration in India.

What is the validity of the 80G certificate?

If you get the approval for the necessary papers and documents, then the Income Tax Department gives you a lifelong validity for the 80G Certificate. More about Udyog Aadhar Registration.

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The leather export body seeks cut in GST rate on footwear to 12%

4119
Currently, exports of leather and its products stand at $6 billion. The Council for Leather Exports (CLE) has sought reduction of Goods and Service Tax (GST) rate to 12 per on footwear priced above ₹1,000, to boost manufacturing and exports.

HIGHLIGHTS:

  • CLE seeks cut in GST rate on footwear to 12%
  • India’s leather export and its product stand at $6 billion

Leather exporters in the country seek cut in GST rate to 12% on footwear priced above Rs1000 to boost manufacturing and export of domestic goods.

Leather exporters in India are looking forward to get a cut of 12% on the GST of footwear products which are over Rs. 1,000. It is cited that this will boost manufacturing as well as export on domestic goods. Notably, the current GST rate of footwear products is 18%. it is said that the GST rate cut will be beneficial in many ways. It means that the GST rate for shoe is also the same.

Council for Leather Exports (CLE) has sought this Goods & Service Tax rate reduction at a pre-budget meeting chaired by Finance Minister Ms.Nirmala Sitharaman.

This sector holds huge potential both for manufacturing and exports and at the same time footwear is not a luxury item, so Council for Leather Exports urge the government to reduce the GST rate on footwear or shoe from 18% to 12%.

Get IEC code for your business

GST rate on footwear worth up to Rs1000 was reduced to five per cent while those above Rs1000 sill at 18%.

Currently, our export of leather and its products stands at $6 billion. Europe and the United States (U.S.) are the major export destination.

As the sector employs about 42 lakh people combining both small and big industries, the GST rate cut will induce more domestic job opportunities and earn more foreign exchange.

Last year, the commerce ministry approved Rs2,600-crore package for the leather industry in a move aimed at increasing employment and investment in the sector. It package came with the promise of tax and non-tax incentives, jobs to 324,000 people in the industry over the next three years. It includes enhanced skill-development and technical up gradation.

When can the taxpayer claim refund from electronic cash ledger?

GST It is possible to claim a refund when return associated liabilities for tax period is discharged. The electronic cash ledger approved the refund. Understand the procedure for GST registration and GST returns here.

Is it mandatory to register under MSME?

MSME Registration is voluntary. If you register your enterprise, there will be various benefits for your enterprise under MSME schemes. More on Income Tax Return Filing.

What is Form 26AS?

The Income-tax department prepares a form for every individual who pays tax. It contains certain details like TDS, TCS, self-assessment tax details and refund details. Learn more about ISO Certification.

The cost for this?

Before starting the certification audits, you need to pay a certain sum for the initial certificate. After getting certified, you have to pay to a surveillance audit. More info on NGO Registration in India.

What is the validity of the 80G certificate?

If you get the approval for the necessary papers and documents, then the Income Tax Department gives you a lifelong validity for the 80G Certificate. More about Udyog Aadhar Registration.

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