60 percent of the country’s population wears footwear worth Rs 30 to Rs 250. At the same time, about 15 percent of the population uses footwear worth Rs 250 to Rs 500.
Confederation of All India Traders (CAIT) and the Indian Footwear Association (IFA) today informed the Union Finance Minister (Finance Minister) Urges Nirmala Sitharaman to stop selling footwear costing less than Rs 1,000 as on December 31 GST ,GST) The tax rate should be kept only 5 percent and the tax rate should be kept at 12 percent on footwear priced above that. On the other hand, both CAT and IFA have asked the Union Commerce Minister (commerce minister) also urged Piyush Goyal to implement BIS Standards only on footwear above Rs 1,000.
On this request, both the organizations argued that about 85 percent of the country’s population uses footwear worth less than Rs 1,000 and hence any increase in the rate of GST will directly hit 85 percent of the country’s population. 90 percent of footwear is produced largely by small and poor people or in home-run industries and cottage industries. For this reason, it is extremely difficult to comply with BIS standards on a large part of the footwear manufacturing in India.
In this regard, CAT and IAF have sent their memorandums to the Finance Ministers of all the states besides the Finance Minister to keep the 5% GST tax slab on footwear. Both these steps will strengthen Prime Minister Narendra Modi’s call for self-reliant India and Make in India.
India is the second largest footwear manufacturer in the world
India is the second largest footwear manufacturer in the world. There are more than 10,000 manufacturing units and about 1.5 lakh footwear traders spread across India employing more than 3 million people, most of which are made very cheaply and for foot protection. Like house and clothes, footwear is also an essential item without which one cannot leave the house. In this, a large population are women working in the house, laborers, students and people from economically weaker and lower classes.
60 percent of the country’s population wears footwear worth Rs 30 to Rs 250. At the same time, about 15 percent of the population uses footwear worth Rs 250 to Rs 500 and 10 percent people use shoes between Rs 500 and Rs 1,000. The remaining 15 per cent people buy good quality slippers, sandals or shoes manufactured by big footwear companies or imported brands.
Increase in GST will have an impact on the industry
CAT National President BC Bhartia and National General Secretary Praveen Khandelwal while addressing a press conference in New Delhi today said that 5 per cent hike in GST tax slab will prove to be adverse for India’s footwear industry and trade. Such an increase of 7 per cent will directly impact the consumption of footwear in the country by 85 per cent of the common people of the country which will go against PM Modi’s resolve to provide easy livelihood to the poor section, as a large number of small traders in footwear have made compositions. Scheme option. Therefore, they will not be able to take input tax credit and thus 7 per cent tax will be added to the price of footwear.
The purpose of increasing the tax rate on footwear was to remove the inverted tax structure and the above data shows that only 15 percent of the big manufacturers and imported brands will benefit from this while the remaining 85 percent will prove to be an additional burden on the traders and manufacturers related to footwear. Will happen. Therefore, CAT and IAF have urged that GST tax rate not exceeding 5% should be levied on footwear.
BIS standard on expensive footwear
IFA National President Ravindra Goel and Secretary General Saurabh Bairathi said that 85 percent of footwear manufacturers in India manufacture on a very small scale and lack even basic manufacturing requirements, so they follow the BIS standards set by the government for footwear. It would be impossible to do. It is very important to consider whether it is possible to comply with BIS standards on footwear of saints, low quality slippers used by pundits, low quality rubber and plastic footwear worn by laborers. These standards can be followed only by large established manufacturers or imported brands.
India is a country of diversities where different sections of the people belonging to poor section, lower or middle class, upper middle class and upper class wear different types of footwear according to their economic capacity. To beat everyone with just one stick in such circumstances would be a great injustice to the footwear industry. Therefore, the BIS norms should be applicable only if the price exceeds Rs.1,000.