Thursday, November 12, 2026

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

‘Trump has cost us’: After midterm losses, MAGA asks if it’s over

As Republicans faced a nationwide drubbing in Tuesday’s midterm...

Prashant Jain sees 12-15% annual returns from Indian equities over 3-5 years

Question We've had a very painful period for the equity...

Raamdeo Agrawal sees FIIs return as earnings improve and valuations turn attractive

Question Looking at the valuation compression across the market, are...

Stocks to Watch for November 2: Reliance Industries, Jio Platforms, BEL, Vodafone Idea, IOC, M&M and more

From Reliance Industries and Jio Platforms reporting strong quarterly...