DPIIT seeks GST rate reduction for certain segments of leather sector

The Department for Promotion of Industry and Internal Trade (DPIIT) has sent proposals for reducing goods and services tax (GST) rates on certain segments of the leather sector, Rajeev Singh Thakur, additional secretary at DPIIT, said.

The leather industry has been demanding that GST be reduced to 5 per cent from the current rate of 12 per cent. Leather products exporters have also expressed resentment over the hike in GST from 5 per cent to 12 per cent on finished leather.

Thakur said about Rs 350 crore had been disbursed under the Indian Footwear and Leather Development Programme (IFLDP) out of the Rs 1,700-crore allocation till FY26.