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Agra’s footwear industry says GST too high

Agra’s footwear industry which Agra’s dates back to the Mughal era feels GST rates are too high for them. Shoe manufacturers say GST will raise the cost of production by at least 20 per cent, which in turn will push up prices of shoes. At present, tax on shoe components like laces and soles is five per cent but under GST will range from 12 per cent to 28 per cent.

The tax on shoes above Rs 500 is 18 per cent than 12 per cent. Manufacturers have to emboss the price on the product. These makers fall under the cottage industry category and manufacture shoes manually and do not use heavy machinery. Moreover, a tax of five per cent on shoes costing up to Rs 300 has been imposed in UP.

The footwear industry wants shoes having a MRP up to Rs 1,000 to be charged a five per cent tax, while shoes above Rs 1,000 should be charged a 12 per cent tax. The provision of embossing the price on shoes would have to be dropped and the tax on shoe components should not be more than five per cent. It says shoes are a basic need of people like clothes and raising the price is not advisable.

 
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