Notes for the counter

The rules, with the source next to them.

GST and compliance for a shop that sells garments, sarees and footwear — where the tax rate moves with the price. Written because the alternative — a dozen blogs quoting slabs that were abolished in 2025 — is how shops end up charging the wrong tax.

Every post cites its instrument — act, rule, notification or circular
Each one carries the date its facts were last checked

GST6 min readChecked 08 Nov 2026

GST on clothing: 5% or 18%, decided by each piece's price

Readymade garments, bedsheets and footwear are taxed at 5% up to ₹2,500 a piece and 18% above it. The rate follows what the piece actually sells for — after your discount, before GST — so a markdown can change it. Here is the rule, the codes, and the cases that trip shops up.

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None of this is advice on your own numbers.

It is the groundwork, so that the half-hour you pay a CA for is spent on your shop rather than on explaining what a margin scheme is. Where we could not verify something to our own standard, the post says so instead of filling the gap.

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