GST rate reduction for certain products
No. CLE-HO/POL/CIRCULAR/25
16th October 2025
Members of the Council
Sub : GST rate reduction for certain products
Dear Member
Kindly refer to our earlier circular wherein we had informed about GST rate reduction from 12% to 5% for the following products, with effect from 22nd September 2025, as per decision taken in the 56th GST Council meeting.
GST rate reduction from 12% to 5% for goods
| Chapter/ HSN | Description of Goods |
| 64 | Footwear of sale value not exceeding Rs.2500 per pair |
| 4107 | Leather further prepared after tanning or crusting, including parchment-dressed leather, of bovine (including buffalo) or equine animals, without hair on, whether or not split, other than leather of heading 4114 |
| 4112 | Leather further prepared after tanning or crusting, including parchment-dressed leather, of sheep or lamb, without wool on, whether or not split, other than leather of heading 4114 |
| 4113 | Leather further prepared after tanning or crusting, including parchment-dressed leather, of other animals, without wool or hair on, whether or not split, other than leather of heading 4114 |
| 4114 | Chamois (including combination chamois) leather; patent leather and patent laminated leather; metallised leather |
| 4115 | Composition leather with a basis of leather or leather fibre, in slabs, sheets or strip, whether or not in rolls; parings and other waste of leather or of composition leather, not suitable for the manufacture of leather articles; leather dust, powder and flour |
| 4202 22 20 | Hand bags and shopping bags, of cotton |
| 4202 22 30 | Hand bags and shopping bags, of jute |
| 4202 22, 4202 29, 4202 31 10, 4202 31 90, 4202 32,4202 39 |
Handicraft– Handbags including pouches and purses; jewellery box |
| 4203 | Gloves specially designed for use in sport |
It may be noted that Footwear of sale value above Rs.2500 per pair will have GST of 18%.
The CBIC has now issued the following notifications. giving effect to the above reductions.
· Central Tax (Rate) Notification No. 13/2025 dated 17.9.25 and Integrated Tax (Rate) Notification No. 13/2025- dated 17.9.25 towards GST reduction from 12% to 5% for Handicraft- Handbags including pouches and purses; jewellery box
· Central Tax (Rate) Notification No. 9/2025 dated 17th September 2025 and Integrated Tax (Rate) Notification No. 9/2025- Integrated Tax (Rate) dated 17th September 2025 towards GST reduction from 12% to 5% for all other items mentioned above
With kind regards
R. Selvam IAS
Executive Director
COUNCIL FOR LEATHER EXPORTS
IGST changes on goods w.e.f. 22.9.25
IGST changes on handbags w.e.f. 22.9.25