GST Council Reduces Tax Rates on Apparel and Footwear

The GST Council has made a significant move by approving a lower Goods and Services Tax (GST) rate for footwear and apparel priced up to Rs 2,500, reducing it to 5 percent. This decision was confirmed by sources on Wednesday, aligning with the council's aim to ease the tax burden.

Currently, the 5 percent GST rate applies to items priced up to Rs 1,000. The new threshold will now include items up to Rs 2,500 per piece, a change ratified in the 56th GST Council meeting. The meeting was chaired by Union Finance Minister Nirmala Sitharaman with the participation of state counterparts.

Additionally, the GST Council has opted to eliminate the 12 and 28 percent slabs, reallocating most items to the 5 and 18 percent categories. This restructuring reflects the council's continued efforts to simplify the tax regime while broadening the benefits to consumers and businesses alike.

(With inputs from agencies.)