GST Rate & HSN Code for Leather and Leather Products

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July 18, 2019

GST Rate for Leather Products

In India, 1st July 2017 marked the beginning of the GST regime. The onset of GST era fixed different rate slabs for different goods and services under which the GST has to be applied. In the GST Council Meeting which took place on 18th May 2017, the tax rate for leather and leather products was fixed by the GST Council.

In this article, we will take your focus on the GST rate & HSN code applicable to leather and leather products in India.

HSN Code for Leather and Leather Products

Under GST, Goods are classified under the HSN Code based on which GST is levied on it. Chapter 41 and 42 of the HSN codes state the HSN code for leather and leather products respectively.

  • Chapter 41 of the HSN code is related to raw hides, leather and skins (excluding the fur skins).
  • Chapter 42 of the HSN code is related to products made of leather, saddler & harness (strap/belt), travel goods, leather backpack and alike containers or products made of animal gut (excluding the silk-worm gut).

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GST Rate for Leather Products

There are 5%, 12% and 28% GST rates for leather products applicable in India, given below:

GST Rate for Leather, Skins and Raw Hides

GST at 5% or 12% applies to all products under chapter 41 of the HSN code which is related to leather, raw hides and skin.

5% GST rate applies to the following leather products:

Code 4101 to code 4106 of GST HSN Chapter.

  • Skins, rawhides, tanned/crust hides and skins which are not processed further.
  • Skins and Rawhides of bovine including buffalo or equine beats (which may be fresh, dried, salted, limed, pickled or preserved in any way but not tanned, parchment dressed or processed further), regardless of dehaired or split.
  • Raw skins of lambs and sheep (which may be fresh, dried, salted, limed, pickled or preserved, in any way but not tanned, parchment dressed or processed further), regardless of with wool on or split.
  • Other raw hides and skins (which may be fresh, dried, salted, limed, pickled or preserved, in any way but not tanned, parchment dressed or processed further), regardless of dehaired or split.
  • Tanned /crust hides and skins of bovine including buffalo or equine beasts, without hair on, regardless of split or not, but not processed further.
  • Tanned /crust skins of lambs and sheep without wool on, regardless of split or not, but not processed further.
  • Tanned /crust hides & skins of other animals, without wool/ hair on, regardless of split or not, but not processed further.

Also Read: GST on Readymade Garments

12% GST rate applies to the following leather products:

  • Leather further prepared after tanning or crusting, including the parchment-dressed leather of the following, whether or not split
  • Bovine including buffalo or equine beast, without hair on.
  • Sheep or lamb, without wool on.
  • Other animals, without wool or hair on.
  • Patent leather & patent laminated leather; metallised leather, Chamois leather including combination chamois leather.
  • Composition leather with a leather/leather fibre basis, in slabs, strips/sheets (rolled or unrolled); parings and other residuals of leather/composition leather, inappropriate for the leather products manufacturing; leather dust/ powder/ flour.
  • Leather gloves, particularly crafted for sports use.

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Leather products under 28% GST

28% GST rate is applicable to the following leather products

  • Harness like straps, belts and Saddlery made for any anima from any material, including traces,  knee pads, leads, muzzles, saddlebags & clothes, dog coats and similar products.
  • Suitcases; Trunks; Vanity & Executive cases; Briefcases; Cases to carry musical instruments,camera, specs, binoculars, gun, map, cigarettes, bottles; School satchels; Holsters & alike containers; Rucksacks; Travelling-bags; Beverages or insulated food bags; handbags;  tool bags; sports bags; toilet bags; shopping bags; Purses & Wallets; baccy pouches; jewellery boxes, powder-boxes, cutlery cases and alike containers which are made up of leather/ plastic sheetings/ textile materials/paperboard/ vulcanised fibre or completely/majorly covered with such stuff or paper.
  • Apparel and clothing attachments/accessories made up of leather or composition leather.
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