GST rate on footwear worth up to Rs 1,000 was reduced to five percent, while those above this value still attract a GST rate of 18 percent.
The Council for Leather Exports (CLE) has sought reduction of GST rate to 12 percent on footwear priced above Rs 1,000, to boost manufacturing and exports.
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CLE Chairman P R Aqeel Ahmed said that they need support from the government as the sector holds huge potential both for manufacturing and exports. He said the refund of GST duties is happening on time and is helping both big and small exporters to further take new orders from global buyers.
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Currently, exports of leather and its products stand at USD 6 billion. Major export destinations include Europe and the US.
Last year, the commerce minister announced a Rs 2,600 crore package for the leather sector to boost exports.