India: GST Council raises tax on job work of leather goods to 12%

29 Jun '22

1 min read

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The Goods and Services Tax (GST) Council at its 47th meeting today has decided to increase GST on job work in relation to processing and manufacture of leather goods and footwear from the existing 5 per cent to 12 per cent. The GST Council met under the chairmanship of Union minister for finance & corporate affairs Nirmala Sitharaman in Chandigarh.

On the basis of recommendations made by GoM on rate rationalisation to remove inverted duty structure, the Council has increased GST on prepared/finished leather/chamois leather / composition leathers from 5 per cent to 12 per cent.

Likewise, under the services, it has raised the GST on job work in relation to processing of hides, skins and leather from 5 per cent to 12 per cent. It has also raised GST on job work in relation to manufacture of leather goods and footwear to 12 per cent from the existing 5 per cent.

The Council also decided to provide UPI & IMPS as an additional mode for payment of Goods and Services Tax to taxpayers under Rule 87(3) of CGST Rules.

All rate changes will be made effective from July 18, 2022, an official release said.

Fibre2Fashion News Desk (RKS)

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