What Is the GST Rate on Finished Leather in India in 2026?
Updated: 1 day ago
GST on finished leather in India is 5% as of October 2026. The rate on finished, chamois, patent and composition leather (HSN 4107 and 4112 to 4115) was cut from 12% to 5% with effect from 22 September 2025, after the 56th GST Council meeting. GST-registered buyers can usually claim it as input tax credit.
Key Takeaways
Finished leather under HSN 4107 and 4112 to 4115 attracts 5% GST as of October 2026, down from 12%.
The cut took effect on 22 September 2025, after the 56th GST Council meeting.
Footwear carries its own rate: 5% up to Rs 2,500 per pair and 18% above it.
Leather shipped from Punjab to another state attracts 5% IGST; within Punjab it is 2.5% CGST plus 2.5% SGST.
An e-way bill is required for inter-state consignments worth more than Rs 50,000.
GST on Finished Leather in India: The Detailed Answer
The cut came from the 56th GST Council meeting and took effect on 22 September 2025 (GST Council press release, September 2025). CBIC notified the new rates on 17 September 2025, as the Council for Leather Exports confirmed in its October 2025 circular. The new rate applies to these headings:
HSN | What it covers | Before 22 Sep 2025 | As of Oct 2026 |
|---|---|---|---|
4107 | Finished leather of bovine (incl. buffalo) or equine animals | 12% | 5% |
4112 | Finished sheep or lamb leather | 12% | 5% |
4113 | Finished leather of other animals, such as goat | 12% | 5% |
4114 | Chamois, patent and patent laminated leather | 12% | 5% |
4115 | Composition leather with a basis of leather or leather fibre | 12% | 5% |
The 5% applies to the leather itself, not to what you make from it. Finished products carry their own rates: footwear, for example, is 5% up to ₹2,500 per pair and 18% above it. Check that every invoice line shows the correct HSN code, because a wrong heading can mean the wrong rate.
Who benefits: footwear and leather goods makers, furniture and interior manufacturers buying upholstery leather, hotel fit-out contractors and traders. For a GST-registered manufacturer the tax is usually recoverable as input tax credit, so the cut mainly frees up working capital. For an unregistered buyer it is a direct cost saving. If you are choosing grades for a new range, our guide to full-grain, top-grain, genuine and bonded leather explains the differences.
Buying Leather from Sanwas International
Sanwas International is an LWG-certified OEM and private label leather manufacturer based in Jalandhar, Punjab, India, producing footwear, outerwear, furniture leather and hides for brands in India and worldwide. Alongside footwear, outerwear and technical leather products, we supply leather hides and furniture leather to manufacturers, brands and retailers across India, and export to Asia, Europe, North America, Africa and Australia. We are LWG certified, offer complimentary first samples and run AQL inspection before dispatch. Discuss your leather requirement with our team.
Frequently Asked Questions
Is GST on leather charged as IGST or CGST plus SGST when it ships from Punjab?
It depends on the place of supply. Leather shipped from a Punjab supplier to a buyer in another state, such as Delhi, Maharashtra or Karnataka, is an inter-state supply and attracts 5% IGST. A buyer within Punjab is charged 2.5% CGST plus 2.5% SGST, which adds up to the same 5%.
Can a furniture or footwear manufacturer claim input tax credit on leather GST?
Generally yes. A GST-registered business that uses the leather in the course of its business can claim the GST as input tax credit, provided it holds a valid tax invoice, has received the goods and the supplier has reported the invoice in its GST returns. Keep invoices that show your GSTIN and the correct HSN code.
Do I need an e-way bill for a finished leather consignment from another state?
Yes, if the consignment value is more than ₹50,000. An e-way bill must be generated before goods worth more than ₹50,000 move between states. Your supplier or transporter usually generates it from the invoice, so share your GSTIN and delivery address accurately when you place the order.
Request a Quote for Finished Leather or Hides
Furniture makers, footwear and leather goods manufacturers, retailers and traders across India: send us the leather type, finish and thickness, quantity, delivery city, GSTIN for invoicing and your target date. First samples are complimentary.
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