Goods and Services Tax (GST) is a comprehensive indirect tax in India.
It is levied on the manufacture, sale, and consumption of goods and services in India.
GST rates vary depending on the specific goods and services.
Thus, it is important to know about GST on Leather and Leather Products so that you can run your business properly by collecting taxes at the right rate.
Furthermore. Leather and leather products are classified under different chapters of the Harmonized System of Nomenclature (HSN) code, and each chapter has a different GST rate.
Let’s learn all about the GST on Leather and Leather Products through this article.
HSN Code of Leather and Leather Related Products
The HSN code assigned to leather and leather-related items can be found in chapter 41 for rawhides, skins (excluding fur skins), and leather, as well as chapter 42 for various leather articles, saddlery, harnesses, travel accessories, handbags, and similar containers, along with articles made from animal gut (excluding silkworm gut).
Get the complete list of HSN Codes at: List of HSN Code with Tax Rates
5% GST Rate on Leather and Leather Products
For certain types of leather and rawhides, the Goods and Services Tax (GST) is 5%. This includes:
- Rawhides and skins of bovine (like cows and buffaloes) or equine (like horses) animals that have not been tanned, parchment dressed, or further processed.
- Raw skins of sheep or lambs that have not been tanned, parchment dressed, or further processed.
- Other rawhides and skins of various animals that have not been tanned, parchment dressed, or further processed.
- Tanned or crust hides and skins of bovine or equine animals without hair, whether or not they are split, but not further processed.
- Tanned or crust skins of sheep or lambs without wool, whether or not they are split, but not further processed.
- Tanned or crust hides and skins of other animals without wool or hair, whether or not they are split.
12% GST Rate on Leather and Leather Products
- Leather that has been further processed after tanning or crusting, including parchment-dressed leather, of bovine or equine animals without hair.
- Leather that has been further processed after tanning or crusting, including parchment-dressed leather, of sheep or lamb without wool.
- Leather that has been further processed after tanning or crusting, including parchment-dressed leather, of other animals without wool or hair.
- Chamois, patent leather, patent laminated leather, and metallised leather.
- Composition leather made from leather or leather fiber, in slabs, sheets, or strips, whether or not in rolls.
- Parings and other waste of leather or composition leather that are not suitable for making leather articles, as well as leather dust, powder, and flour. So, depending on the type of leather or skin and how it’s processed, it will be subject to either a 5% or 12% GST rate.
- Only leather gloves specially designed for sports are taxed at a 12% GST rate.
All Other Leather Products taxed under 28% GST Rate
All other leather products, including bags, handbags, and other items, are taxed at a higher rate of 28% GST. This also includes Items such as animal saddlery,containers, and leather clothing accessories all taxed at a 28% GST rate.
Trademark Registration for Leather Products: Trademark Class 18
Moreover, If you want any other guidance relating to GST on Leather and Leather Products, please feel free to talk to our business advisors at 8881-069-069.
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