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CLE urges government to cut GST rate on footwear to boost exports

Published
today Jun 13, 2019
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Council for Leather Exports (CLE) has urged the finance ministry to cut down the goods and services tax (GST) rate on footwear to boost exports and growth of the sector. The recommendation was made to the new finance minister Nirmala Sitharaman during the pre-budget meeting.
 

CLE urges government to cut GST rate on footwear to boost exports - CNC


CLE wants the GST rate to be reduced to 12 percent on footwear priced above Rs 1,000 ($14). Currently, the GST rate for footwear above Rs 1,000 is 18 while footwear below Rs 1,000 has a GST rate of 5 percent.
 
The council feels that the reduction in GST rate by 6 percent will help exporters in the country and boost exports bringing in revenue to the country. At present, export of leather and its products stands at about USD 6 billion.

“The domestic footwear sector holds huge potential to create jobs and earn foreign exchange. Reduction of GST on footwear would help promote growth of domestic footwear industry," CLE chairman P R Aqeel Ahmed said in a statement.
 
India’s leather sector had achieved a 6 percent growth in exports for the financial year 2018-2019 and is confident of achieving higher growth in the coming years.

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