Sunday, October 12, 2025

Your shopping bill decoded: How GST impacts clothes, shoes, and more

Date:

Think your fashion choices are only influenced by trends and budgets? Think again. Taxes also play a role — and they’re included in your shopping bill.Whether it’s a cotton kurta, a designer dress, or a pair of sneakers, how much you pay depends on how the Goods and Services Tax (GST) applies to your purchase.Here’s how GST affects clothes and footwear in India — and how knowing this can help you save.Clothes: GST by price, not styleGST on readymade garments is based on price. If the garment costs less than ₹1,000, GST is 5%. If it costs ₹1,000 or more, GST is 12%.So, buying two shirts priced at ₹999 each means you pay less GST than buying one shirt priced at ₹1,001 — even if your total spend is the same.Unstitched fabrics like cotton, silk, or georgette attract a flat 5% GST, regardless of the price. If you prefer getting your clothes tailored, that means lower tax.Footwear: A case of price and materialGST on footwear also depends on price:Below ₹1,000 – 5% GST₹1,000 and above – 12% GSTThe tax can differ based on material of the footwear. Leather shoes follow the same slab system: 5% GST below ₹1,000 and 12% above it.But synthetic or artificial leather, rubber, plastic, or EVA foam footwear attracts a flat 12% GST, regardless of price. So a pair of EVA foam sandals may be taxed at 12%, even if they’re inexpensive.Sarees: Simple or embellished? That decides GSTGST on sarees depends on material and design. Cotton and silk sarees generally attract 5% GST. Sarees made of georgette or decorated with sequins, embroidery, or tassels may attract up to 12% GST, depending on the embellishment.No kid gloves in GST lawGST does not differentiate between adult and children’s clothing or footwear. Whether it’s a suit for a toddler or a lehenga for a teenager, the same GST slabs apply.Online shopping? GST applies to extra charges tooGST rates don’t change when shopping online. But extra charges like delivery fees or platform service fees attract 18% GST. So, if you buy a ₹999 kurta with a ₹100 delivery fee, you’ll pay 5% GST on the kurta — and 18% on the ₹100 delivery fee.The bottom lineUnderstanding GST rates on clothes and footwear can help you shop smarter. Even a small price difference — like crossing the ₹1,000 mark — can raise the tax you pay. Knowing which materials attract higher GST can also guide your buying decisions, especially during discounts. Your wardrobe isn’t just about style — it’s also about tax.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

CLSA sees Nifty at 26,300 by year-end; gold may hit $4,100, silver $50 before pause

Gold and silver may see short-term gains followed by...

Prestige Group launches 620 homes worth Rs 2,200 cr for sales in Ghaziabad

New Delhi: Realty firm Prestige Estates Projects Ltd has...

Mexico Floods: See the aftermath of heavy rains sweep away cars, destroy homes, and kill dozens

Severe floods and landslides have hit central and southeastern...

Indian bond yields may ease to 6.2% if RBI cuts rates in December, LGT Wealth’s Chirag Doshi explains why

जैसे ही 2025 अपनी अंतिम तिमाही में प्रवेश कर...