As the Central government aims at easing the burden on households and boosting consumer demand, the Goods and Services Tax (GST) Council on Wednesday approved key rate cuts for footwear and apparel. Items priced up to ₹2,500 will now fall under the 5% slab, compared to the existing structure where only products up to ₹1,000 attracted the concessional rate. Goods above this threshold were earlier taxed at 12%.
The decision, taken during the 56th GST Council meeting chaired by Finance Minister Nirmala Sitharaman, is part of a broader overhaul of India’s indirect tax regime. The Council has also resolved to eradicate the 12% and 28% slabs, consolidating most goods into just two categories 5% and 18%.
Officials said the rationalisation is intended to simplify compliance, reduce costs for middle-income families, and drive demand across the footwear and apparel sectors. Economists believe the move could significantly lift sales ahead of the festive season, offering a much-needed boost to the retail industry.
Addressing the media on Tuesday ahead of the Council’s deliberations, Sitharaman underscored the government’s vision of streamlining India’s eight-year-old GST system. “The proposed rollout of next-generation reforms will make the economy absolutely open and transparent, while further lowering the compliance burden and helping small businesses thrive,” she said.
Industry insiders welcomed the Council’s decision, calling it a “win-win” for consumers and retailers alike. With footwear and apparel forming a large part of household expenditure, the rate cut is expected to provide tangible relief at a time when rising inflation has strained budgets.
 Council on Wednesday approved key rate cuts for footwear and apparel.){kind=link}