CBIC: GST Rate for Textiles & Footwear products | TranZact

Nov 30, 2021 in Documents



The Government of India’s organization CBIC (Central Board of Indirect Taxes and Customs) has released a notification some days earlier regarding the Change in GST Rate from 5% to 12% on the Textiles (Fabrics and Apparel) sector. Further, this hike in the GST Rates will be applicable on the Footwears also. 

And these changes in the GST Rates on Textiles and Footwears industries products will be effective from January 1, 2022.

The CBIC’s notification is a government step forward since its 45th GST Council meeting held in September 2021. In the meeting, there was a discussion around the correction steps that should get made for the Inverted Duty Structure prevailing in the textile sector for a long time. Further, it is affecting a small section of the Textile and Apparel industry.

45th GST Council Meeting

Also, in the September meeting only, there were discussions on this topic. But no decision got announced for the change in GST rates. So, the notification by CBIC on November 18, 2021, is the result of the 45th GST (Tax) Council Meeting.

List of products getting the effect of the CBIC’s new GST Rate change notification.

GST Rates hike on Apparel and Textile Industry

Now according to this new notification GST rate for the following type of products in reformed from 5% to 12% -

  1. Woven fabrics. 
  2. Sewing thread of man-made filaments, whether or not put up for retail sale, 
  3. Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 Decitex. 
  4. Artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 Decitex. 
  5. Knotted netting of twine, cordage, or rope, made up of fishing nets and other made up nets, of textile materials. 
  6. Pile fabrics, including ― long pile fabrics and terry fabrics, knitted or crocheted.
  7. Blankets and traveling rugs. 
  8. Bed Linen. 
  9. Table Linen.
  10. Toilet Linen And Kitchen Linen. 
  11. Curtains (including drapes) and Interior Blinds. 
  12. Curtain or Bed Valances. 
  13. Sacks and bags, of a kind used for the packing of goods.
  14. Tarpaulins, awnings, and Sun-Blinds.
  15. Tents.
  16. Sails for Boats. 
  17. Sailboards or Land-craft. 
  18. Camping goods, Sets, consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries. 
  19. Embroidered Tablecloths or Serviettes, or similar textile articles, put up in packings for retail sale, etc.

Apart from this particular list of articles, many goods are of concern to Textile and Apparels sector. And they will also have the same rate of tax.

GST rate changes on Footwears

In the case of the Footwear Industry, the products of the sale value of Rs.1000 per pair were getting a GST rate of 5% earlier. But now, according to the notification, the GST rate for similar products is 12%.

Read More about - What is GST Invoice & GST E-Invoicing-5 Problems SMEs face?


The take on this particular notification of the Government and Union Finance Minister Smt. Nirmala Sitharaman is that these changes are necessary to make a uniform rate for the whole industry. Also, helping those small part businesses of this sector that are facing the problems of different GST rates on their Inputs and output products. 

The Confederation of All India Traders (CAIT) and many similar organizations are upset with this hike in GST rates on Textile products. And are keeping their point of view in front of the government. This change is making the GST Tax structure more complicated.


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