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Central Tax (Rate)High impact for ecommerce sellers

GST on apparel, made-up textiles and footwear: the ₹2,500 per piece / per pair line

Reviewed by CA Apurav GargSummary reviewed

Document
Notification No. 09/2025–Central Tax (Rate)
Issued
17 Sept 2025
Effective
22 Sept 2025
Issued by
Ministry of Finance (Department of Revenue), CBIC
Official PDF(opens in a new tab)

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On this page

What it means for ecommerce sellers

From 22 September 2025, the GST rate on readymade garments (Chapters 61 and 62), other made-up textile articles (Chapter 63) and footwear (Chapter 64) depends on the sale value of each piece or pair. Up to ₹2,500 a piece or pair falls in Schedule I (2.5% central tax, 5% in total with state tax). Above ₹2,500 falls in Schedule II (9% central tax, 18% in total). For a fashion or footwear brand, the rate can change with the discount, so the rate is decided on the actual sale value of each item, not the MRP.

Who it affects

  • Apparel and fashion brands selling on marketplaces or their own website
  • Footwear brands and resellers
  • Home-textile and made-ups sellers (Chapter 63)
  • Marketplace sellers running discounts or bundles near ₹2,500

Before and after

  • Notification that sets goods rates

    Before
    Notification No. 01/2017–Central Tax (Rate), dated 28 June 2017
    After
    Notification No. 09/2025–Central Tax (Rate), which supersedes it from 22 September 2025

  • Apparel (Ch. 61, 62) at or below ₹2,500 a piece

    Before
    Rate depended on the earlier entries of Notification 01/2017
    After
    Schedule I (S. No. 388, 389): 2.5% central tax, 5% with state tax

  • Apparel (Ch. 61, 62) above ₹2,500 a piece

    Before
    Rate depended on the earlier entries of Notification 01/2017
    After
    Schedule II (S. No. 197, 198): 9% central tax, 18% with state tax

  • Footwear (Ch. 64) at or below ₹2,500 a pair

    Before
    Rate depended on the earlier entries of Notification 01/2017
    After
    Schedule I (S. No. 392): 2.5% central tax, 5% with state tax

What to do

  1. List every SKU near the ₹2,500 line and check which side of it the actual selling price falls, after discounts.
  2. Set up the tax rate in your marketplace listings, website and invoicing tool per item, not per category.
  3. Check how bundles and "buy 2 get 1" offers split the sale value across the pieces.
  4. Keep the item-wise sale value on the invoice, so the rate applied can be shown later.

Provisions referred to: Section 9(1) CGST Act; Section 15(5) CGST Act; Schedule I S. No. 388–392; Schedule II S. No. 197–199, 202–206; Chapters 61, 62, 63, 64

Related tools and services

Official text

As issued by Ministry of Finance (Department of Revenue), CBIC. Where the text starts with “Extract”, only the parts that concern ecommerce sellers are reproduced; the official PDF (opens in a new tab) is the authoritative version.

Type a word, number or section to highlight it below.

Extract: the parts of the official text that this update relates to. Omitted passages are marked […]. The complete document is at the official link above. [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) NOTIFICATION NO. 9/2025-Central Tax (Rate) New Delhi, the 17th September, 2025 In exercise of the powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 01/2017-Central Tax (Rate), dated the 28th June, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017, except as respects things done or omitted to be done before such supersession, the Central Government, on the recommendations of the Council, hereby notifies the rate of central tax of- (i) 2.5 per cent. in respect of goods specified in Schedule I; (ii) 9 per cent. in respect of goods specified in Schedule II; (iii) 20 per cent. in respect of goods specified in Schedule III; (iv) 1.5 per cent. in respect of goods specified in Schedule IV; (v) 0.125 per cent. in respect of goods specified in Schedule V; (vi) 0.75 per cent. in respect of goods specified in Schedule VI, and (vii) 14 per cent. in respect of goods specified in Schedule VII, appended to this notification (hereinafter referred to as the said Schedules), that shall be levied on intra-State supplies of goods, the description of which is specified in the corresponding entry in column (3) of the said Schedules, falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Schedules. Schedule I – 2.5% […] 387. 60 Knitted or crocheted fabrics [All goods] 388. 61 Article of apparel and clothing accessories, knitted or crocheted, of sale value not exceeding Rs 2500 per piece 389. 62 Articles of apparel and clothing accessories, not knitted or crocheted, of sale value not exceeding Rs. 2500 per piece 390. 63 [other than 6305 32 00, 6305 33 00, 6309] Other made up textile articles, sets, of sale value not exceeding Rs. 2500 per piece 391. 6309 or 6310 Worn clothing and other worn articles; rags 392. 64 Footwear of sale value not exceeding Rs.2500 per pair […] Schedule II – 9% […] 197. 61 Articles of apparel and clothing accessories, knitted or crocheted, of sale value exceeding Rs. 2500 per piece 198. 62 Articles of apparel and clothing accessories, not knitted or crocheted, of sale value exceeding Rs. 2500 per piece 199. 63 [other than 6309] Other made-up textile articles, sets of sale value exceeding Rs. 2500 per piece [other than worn clothing and other worn articles; rags] […] 202. 6401 Waterproof footwear with outer soles and uppers of rubber or of plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes 203. 6402 Other footwear with outer soles and uppers of rubber or plastics 204. 6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather 205. 6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials 206. 6405 Other footwear […] 2. This notification shall come into force with effect from the 22nd day of September, 2025. [F. No CBIC-190341/188/2025-TRU] (Dheeraj Sharma) Under Secretary to the Government of India

Questions sellers ask

What is the GST rate on clothes priced at ₹2,500 or less?

Under Notification 09/2025–Central Tax (Rate), apparel of Chapters 61 and 62 with a sale value not exceeding ₹2,500 per piece is in Schedule I: 2.5% central tax, which makes 5% with state tax, from 22 September 2025.

What GST applies to apparel above ₹2,500 a piece?

Apparel of Chapters 61 and 62 with a sale value exceeding ₹2,500 per piece is in Schedule II (S. No. 197 and 198): 9% central tax, 18% with state tax.

Does the ₹2,500 limit apply to footwear?

Yes. Schedule I S. No. 392 covers footwear of sale value not exceeding ₹2,500 per pair. Other footwear of headings 6401 to 6405 is listed in Schedule II.

Is the ₹2,500 limit checked on MRP or on the selling price?

The entries refer to the "sale value" per piece or pair, so the value actually charged for the item is what counts. A discount can move an item from 18% to 5%. Check unusual cases, such as bundles, against the full notification.

Want help working out what this means for your business?

We handle GST and TDS compliance, returns and notice replies for D2C and marketplace sellers, and can walk you through how a change applies to your books.

Contact usWhatsApp us

General information only, not professional advice. The summary is ecomca’s reading of the document; the official PDF is the authoritative version, and later amendments may change it. Check the official source before you act.