HSN codes
HSN codes and GST rates for leather and footwear
Footwear bills by its upper and its price per pair; leather and leather goods bill by what they are. These are the codes a tannery, shoe unit or bag maker uses most.
In short
Footwear with leather uppers usually sits under HSN 6403 and with textile uppers under 6404, with the rate set by the price per pair. SimpleERP stores the HSN and rate on each product and prints both on every line.
Illustration of GST tax invoice INV-2026-27-0213 to Ravi Stores with CGST 9% and SGST 9%, round off, a UPI QR code and the amount in words.
The data
The codes and usual rates
| HSN | Goods | Usual GST rate | Notes |
|---|---|---|---|
| 6403 | Footwear with leather uppers | 5% up to ₹2,500 a pair, else 18% | Sale value per pair decides the rate |
| 6404 | Footwear with textile uppers | 5% up to ₹2,500 a pair, else 18% | Canvas shoes and sports shoes |
| 6402 | Footwear of rubber or plastics | 5% up to ₹2,500 a pair, else 18% | Slippers, sandals and moulded shoes |
| 6405 | Other footwear | 5% up to ₹2,500 a pair, else 18% | Uppers of other materials |
| 6406 | Parts of footwear: uppers, insoles, soles | check | Sold separately; confirm the current rate |
| 4202 | Bags, wallets and cases of leather | 18% | Jute and cotton bags have a lower rate; check |
| 4203 | Leather garments, gloves and belts | check | Rate can depend on the item |
| 4107 | Finished leather of bovine animals | 5% | Main input for shoe and bag units |
| 4104 | Tanned hides, wet blue or crust | 5% | Sold by tanneries to finishing units |
| 4106 | Tanned skins of goats and sheep | 5% | Lighter leather for uppers and linings |
| 4101 | Raw hides and skins | check | Bought by tanneries; confirm the rate |
| 3202 | Tanning agents | check | Chemicals for tanneries |
| 3506 | Adhesives | 18% | Sole and upper bonding |
| 5903 | Coated fabric, synthetic leather | check | Used for uppers and linings |
| 9607 | Zip fasteners | check | Trims for bags and boots |
| 8453 | Footwear and leather machinery | 18% | Capital goods |
Sources: CBIC: Customs tariff (HSN chapters), GST Council: rate changes effective 22 September 2025, CBIC: GST rates and notifications. Verified .
Which HSN codes does a footwear and leather unit use most?
Footwear lives in chapter 64, where the heading follows the upper: 6402 for rubber or plastic, 6403 for leather, 6404 for textile and 6405 for the rest. Parts such as uppers, insoles and soles sold on their own go to 6406. Leather itself sits in chapter 41, and bags, wallets, belts and leather garments in chapter 42.
Inputs and outputs differ because a shoe unit buys finished leather under 4107, soles under 6406 and adhesives under 3506, then sells a pair under 6403 at a rate set by its price. A tannery sells the 4107 leather the shoe unit buys. The code on each bill decides both the tax and the credit.
What changed on 22 September 2025 for leather and footwear?
The September 2025 changes moved the footwear value band. Update every footwear product rate before you post an invoice dated after the change.
- The band moved to ₹2,500 a pair: footwear sold up to ₹2,500 a pair is 5% and above it 18%, as notified. Before, pairs up to ₹1,000 were 12% and above it 18%.
- Most mass-market pairs fell to 5%, which can leave a shoe unit with credit on leather, soles and adhesive that builds up faster than it is used.
- Parts and leather goods: footwear parts and some leather articles were also revised, so check 6406 and chapter 42 items against the current schedule.
- Price decides the rate, line by line: the same 6403 shoe at ₹2,400 and at ₹2,600 carries two different rates.
HSN on invoices and the GSTR-1 HSN summary in SimpleERP
A footwear invoice can carry two rates under one code. SimpleERP keeps the code and rate on each line, and the HSN summary on the invoice print gives each rate its own row.
- HSN on every product and every invoice line, so a dealer bill prints 6403 for leather shoes and 6402 for slippers.
- The band is your call on each line: SimpleERP does not switch the rate by price, so pick the rate on the line, or keep one product per price band, when a style sells on both sides of ₹2,500.
- Four or six digits by turnover, as notified: currently four digits on B2B invoices up to ₹5 crore of aggregate turnover and six above it.
- The HSN summary report groups sales by code with taxable value, CGST, SGST and IGST, and exports to CSV for GSTR-1 table 12. It totals by code, so where one code sold at both rates in the month, split that row by rate when you fill table 12. See HSN codes on invoices and GSTR-1 table 12.
Illustration of a profit and loss statement for April to September 2026 with net profit of ₹4,12,800, a GST summary and the lock date.
Inputs and input tax credit for leather and footwear
Leather, soles, adhesive and machinery come in on supplier bills, and each code on those bills is what your GSTR-2B shows.
- Finished leather and tanned skins come in under 4107 and 4106, soles and uppers under 6406, adhesive under 3506.
- Inputs above your output rate build up credit when most pairs sell at 5%; ask your CA whether a refund of accumulated credit applies to you.
- Credit follows GSTR-2B: the purchase register lists every bill with GSTIN, HSN and tax and exports to CSV so your CA can match it against GSTR-2B.
- Job work is a service: stitching or lasting done by a job worker carries a SAC code, not an HSN.
FAQ
Questions, answered
How many digits of HSN must a footwear unit print?
As notified, a business with aggregate turnover up to ₹5 crore in the previous year shows at least four digits on B2B invoices, such as 6403. Above ₹5 crore you show six digits on every invoice, such as 640399. More digits are always allowed and many exporters print eight.
What is the GST rate on footwear?
Since 22 September 2025, footwear sold up to ₹2,500 a pair has been 5% and above it 18%, as notified, whatever the upper. The HSN still matters for the code you print and report. Check the rate for each price before billing. Rates change, so confirm the rate for your goods or services with your CA or the GST portal before you rely on it.
Is ITC available on finished leather for a shoe unit?
Generally yes. A shoe or bag unit that buys finished leather to make goods for sale can claim the GST on it, provided the supplier's bill appears in GSTR-2B and the other conditions are met. Where inputs carry more tax than the shoes, the credit can build up.
Where do I set HSN in SimpleERP?
Open the product, type the HSN code and pick the GST rate. Every invoice line for that product then carries both, and the HSN summary report groups sales by code. For many styles at once, fill the HSN column in the product CSV import.
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