Cheaper shoes and clothes? GST Council likely cuts tax on footwear, apparel up to Rs 2,500 to 5%

The GST Council has likely cleared a proposal to cut tax on footwear and apparel priced up to Rs 2,500 to 5%, people familiar with the discussions told PTI on Wednesday.

At present, only items priced up to Rs 1,000 fall in the 5% bracket, while anything above that is taxed at 12%. The change means shoes and clothes up to Rs 2,500 a piece would now come under the lower slab.

The decision was taken at the Council’s 56th meeting, chaired by Finance Minister Nirmala Sitharaman with state finance ministers in attendance.

Alongside this move, the Council also agreed to scrap the 12% and 28% GST slabs altogether, shifting most items into the 5% and 18% categories.