GST Rate for Leather and Leather Products

The GST era is all set to begin in India from 1st July 2017. In preparation for the rollout of the GST, the GST Council has fixed the rate for leather and leather products in the GST Council Meeting held on 18th May 2017. In this article, we look at the GST rate for leather and leather products in India.

HSN Code for Leather and Leather Products

The HSN code for leather and leather products fall under chapter 41 and chapter 42, respectively. Chapter 41 of the HSN code pertains to rawhides and skins (other than fur skins) and leather. Chapter 42 of the HSN code pertains to articles of leather, saddlery and harness, travel goods, handbags and similar containers or articles of animal gut (other than silkworm gut).

GST Rate for Leather, Skins and Rawhides

All goods under chapter 41 of the HSN code pertaining to leather, rawhides and skin attract GST at 5% or 12% only.

Leather and rawhides attracting 5% GST

Rawhides, skins, tanned or crust hides and skins, not further prepared
Rawhides and skins of bovine (including buffalo) or equine animals (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment dressed or further prepared), whether or not dehaired or split
Any raw skins of sheep or lambs (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment dressed or further prepared), whether or not with wool on or split.
Other rawhides and skins (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment dressed or further prepared), whether or not dehaired or split.
Tanned or crust hides and skins of bovine (including buffalo) or equine animals, without hair on, whether or not split, but not further prepared.
Any tanned or crust skins of sheep or lambs, without wool on, whether or not split, but not further prepared.
Tanned or crust hides and skins of other animals, without wool or hair on, whether or not split, but not further prepared.

Leather and rawhides attracting 12% GST

Leather material further prepared after tanning or crusting, including parchment-dressed leather, of bovine (including buffalo) or equine animals, without hair on, whether or not split.
Any leather material further prepared after tanning or crusting, including parchment-dressed leather, of sheep or lamb, without wool on, whether or not split.
Leather further prepared after tanning or crusting, including parchment-dressed leather, of other animals, without wool or hair on, whether or not split.
Chamois (including combination chamois) leather; patent leather and patent laminated leather; metallised leather.
Composition leather with a basis of leather or leather fibre, in slabs, sheets or strip, whether or not in rolls; parings and other waste of leather or of composition leather, not suitable for the manufacture of leather articles; leather dust, powder and flour.

GST Rate for Leather Products like Bags, Handbags and Gloves

All goods under chapter 42 of the HSN code pertaining to articles of leather, travel goods, handbags and other leather products are taxed at 12% and 28% as below:

Leather Products Taxed at 12% GST

Only leather gloves specially designed for use in sports is taxed at 12% GST. All other leather products are taxed at 28% GST rate.

Leather Products Taxed at 28% GST

Saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddlebags, dog coats and the like), of any material.
Trunks, suitcases, vanity-cases, executive-cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; travelling-bags, insulated food or beverages bags, toilet bags, rucksacks, handbags, shopping bags, wallets, purses, map-cases, cigarette cases, to-baccy pouches, tool bags, sports bags, bottle cases, jewellery boxes, powder-boxes, cutlery cases and similar containers, of leather, of sheeting of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with such materials or with paper.
Articles of apparel and clothing accessories, of leather or of composition leather.

Simplify the GST registration & GST return filing process with IndiaFilings experts!