The Commodity and Services Tax Board to reduce the tax on shoes, and clothes less than 2,500 rupees to 5 %

It was reported that the Council of Commodities and Services Tax (GST), at its fifty -sixth meeting, headed by the Federation Minister of Finance, Nermalla Sitraman, agreed to conduct a significant mitigation of consumers in the shoe and clothing sector. The sources told PTI news agency that the council decided to extend the rate of goods and services tax by 5 % to shoes and clothes at a price of up to 2500 rupees per piece.

Currently, the shoes and clothes that cost up to 1000 rupees are attracting, while the elements that exist are higher than this threshold under 12 %. With the new decision, the maximum rate of discrimination was more than weak, providing great benefits for medium income families and perhaps enhancing demand in the sector.

This meeting, which was attended by finance ministers from all states and the regions of the Union, also circulated a broader rationalization of tax panels. In principle, the Council approved the gradual disposal of brackets by 12 % and 28 %, as it is expected that most commodities will be absorbed in 5 % and 18 % categories. Officials indicated that this step aims to simplify the tax structure, reduce compliance burdens, and create a more predictive system for companies.

Official notifications are expected soon, after which the revised rates will enter into force.