The footwear industry has appealed to the finance ministry to reduce GST on footwear priced below Rs 1,000 from the current 12% back to 5%. In a letter to the ministry, industry representatives argued that the higher GST rate has inflated prices, adversely impacting affordability for lower and middle-class consumers. Previously taxed at 5%, the increase to 12% aimed to address an inverted duty structure but has since hindered industry growth and formal sector participation. The industry emphasizes that a lower GST rate would promote equality between organized and unorganized sectors, broaden the tax base.
Footwear Industry Urges GST Cut Ahead of Council Meeting
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