Shoes HSN Code 6403: Footwear Uppers of Leather and GST Rate

Q: What is HSN 6403?

HSN 6403 refers to footwear with outer soles of rubber, plastics, or leather and uppers made of leather, including shoes, boots, sandals, and slippers.

Q: What’s the GST rate for shoes under HSN 6403?

Footwear priced up to ₹2,500 per pair attracts 5% GST. Footwear priced above ₹2,500 is taxed at 18%.

Q: Can footwear manufacturers claim ITC?

Yes, footwear manufacturers can claim Input Tax Credit (ITC) on inputs such as leather, soles, adhesives, and other materials if the footwear is supplied under taxable rates.

Q: What are common errors to avoid in footwear billing?

Common errors include applying a flat 18% GST on all shoes regardless of price and using incorrect HSN sub-codes for materials or pricing categories.

Vikash

17 Oct 2025 • 4 min read

What is HSN Code 6403?

HSN Code 6403 covers “Footwear with outer soles of rubber, plastics, leather, or composition leather and uppers of leather.” It includes all types of leather and synthetic footwear—like formal shoes, boots, sandals, and chappals—with leather uppers.This classification is primarily used by shoe retailers, leather manufacturers, wholesalers, and footwear brands to correctly apply GST rates for compliant billing.

GST Rates & Exemptions for HSN Code 6403

As per the latest GST updates (effective 22 September 2025), footwear pricing determines the rate slab applicable under HSN Code 6403. The GST Council simplified earlier 12% and 18% slabs into a two-tier rate structure to encourage affordable footwear access.

Updated Footwear GST Structure (2025)

Price Range (per pair)	GST Rate (%)	Notes
Up to ₹2,500	5%	Includes leather, rubber, plastic shoes and sandals
Above ₹2,500	18%	Premium or branded footwear, leather boots, designer collections

This price-based structure ensures lower taxes on everyday shoes while maintaining standard rates for luxury and high-end footwear. Earlier, the threshold of ₹1,000 was increased to ₹2,500 to boost affordability in rural and semi-urban markets.

Table Notes

The ₹2,500 threshold applies to the retail sale price per pair (exclusive of GST).
Footwear parts like soles, heels, and uppers have a flat GST rate of 18%, irrespective of final footwear price.
There is no compensation cess applicable on footwear.
Both leather and synthetic variations are included under the same HSN classification, but rate differences may arise by product cost.

GST Rates Applicable Under 6403

HSN Code	Footwear Category & Description	Material / Construction	GST Rate (%)	Description Example
6403	Footwear Uppers of Leather	Rubber, Plastic, Leather Sole	5 / 18	General leather shoes
64031200	Sports Footwear (Ski-boots, Snowboard boots)	Leather or synthetic upper	5 / 18	Sports utility footwear
640319	Other Leather Footwear	Rubber or leather outsole	5 / 18	Casual or formal leather shoes
64032040	Kolhapuri Chappals & Traditional Leather Footwear	Handmade, all-leather type	5	Traditional Indian chappals
64033000	Footwear on Wooden or Raised Platform	Leather upper, wooden base	18	Wooden/leather sandals
64034000	Safety Footwear with Protective Metal Toe-Caps	Industrial leather boots	18	Construction safety shoes
640351	Leather Shoes Covering the Ankle	Rubber/plastic soles	5 / 18	Boots & ankle leather shoes
64039920	Leather Sandals with Synthetic Soles	Leather upper with PU sole	5 / 18	Fashion sandals

(Rates reflect applicable brackets below or above ₹2,500 per pair.)

What’s Included in HSN 6403 Footwear?

HSN 6403 encompasses all footwear where the upper is leather and soles are made of rubber, plastic, or composition leather. It includes:

Formal & casual leather shoes (men/women/children)
Boots & safety shoes
Kolhapuri & handcrafted slippers
Leather sandals & chappals
Sports and outdoor footwear with leather finishes

Leather accessories and parts used in footwear manufacturing, like straps and uppers, also fall under this category but are taxed differently at the flat 18% rate.

Explore Gimbooks HSN/SAC code & GST Rate finder

Key Exemptions Under GST for Footwear

Footwear priced below ₹2,500 per pair enjoys 5% GST (essential category).
Handmade or traditional leather chappals (e.g., Kolhapuri) may qualify for special consideration under the 5% bracket, subject to turnover and price.
No broad exemptions apply to branded or synthetic footwear above ₹2,500 per pair.
Raw materials like EVA soles or adhesives may attract higher GST (12–18%) under input classifications.

Input Tax Credit (ITC) Rules for Footwear

Registered footwear businesses can claim Input Tax Credit (ITC) on:

Raw materials (rubber, leather, adhesives, soles)
Components (heels, buckles, insoles, laces)
Transport and packaging services

ITC Eligibility Conditions:

Footwear must be sold under a taxable rate (5% or 18%); ITC cannot be claimed for exempted goods.
Proper GST invoices and supplier registration are mandatory for credit claims.
Manufacturers producing both low-cost (5%) and premium (18%) shoes should maintain distinct input accounts for accurate credit filing.

GST on Footwear Billing: Practical Scenarios

A retail outlet selling leather sandals at ₹2,000 per pair charges 5% GST.
A luxury brand pricing shoes at ₹4,000 per pair applies 18% GST.
A footwear manufacturing company bills imported leather parts at 18% GST but claims ITC against final taxable sales.
An online seller listing ₹2,499 footwear remains under the 5% bracket; ₹2,501 triggers 18%.

Common Mistakes in Footwear GST Compliance

Misclassifying rubber/plastic footwear under leather codes (6403 vs 6401/6402).
Charging flat 18% on all footwear despite price brackets.
Missing ITC documentation for input parts or misusing credits for non-taxable categories.
Not revising GST invoicing systems post the 2025 rate reform.

Conclusion

HSN Code 6403 ensures simplified GST compliance for footwear uppers made of leather across both everyday and luxury segments. Under GST 2.0 reforms (effective 22 September 2025), affordable footwear up to ₹2,500 attracts just 5% GST, while premium or designer models are taxed at 18%. Correct classification and consistent documentation help footwear manufacturers, wholesalers, and retailers maintain compliance and cost efficiency in 2025.

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FAQs: HSN Code 6403 & Footwear GST

What is HSN 6403?

It refers to footwear with outer soles of rubber, plastics, or leather and uppers made of leather, including shoes, boots, sandals, and slippers.

What’s the GST rate for shoes under HSN 6403?

Footwear up to ₹2,500 per pair attracts 5% GST; above ₹2,500 is taxed at 18%.

Are handcrafted or traditional footwear exempt from GST?

Traditional leather chappals like Kolhapuri are taxed at 5%, subject to price and category; full exemption doesn’t apply.

Can footwear manufacturers claim ITC?

Yes, ITC is available on leather, soles, adhesives, and other input materials if footwear is supplied under taxable rates.

What are common errors to avoid in footwear billing?

Applying flat 18% GST on all shoes or using the wrong HSN sub-code for materials and pricing are common compliance mistakes.