Sector playbook
Leather and footwear exporters: the four things you are leaving on the table.
Leather and footwear sit on the higher end of RoDTEP rates, typically 2.5 to 3.5 percent. The Indian Footwear and Leather Development Programme (IFLDP) is the most under-utilised scheme in the sector. Most Kanpur and Chennai exporters we have spoken to do not know they qualify.
- Sector export value, FY 24-25
- Rs 41,200 crore (FY 2024-25)
- Avg RoDTEP rate
- 2.8%
- RoSCTL stacking
- Not applicable
- HS chapters covered
- 41, 42, 64
Top 13 HS codes in this sector
Sorted by RoDTEP rate. Click through for the detailed page on each code.
| HS code | Description | RoDTEP | Drawback | GST refund |
|---|---|---|---|---|
| 420321 | Gloves designed for use in sports, of leather | 3.10% | 1.70% | 0.5% |
| 640399 | Other footwear with leather uppers, n.e.s. | 3.10% | 1.70% | 0.5% |
| 420221 | Handbags with outer surface of leather | 3.00% | 1.65% | 0.5% |
| 420231 | Wallets, purses with outer surface of leather | 3.00% | 1.65% | 0.5% |
| 420310 | Articles of apparel of leather | 3.00% | 1.65% | 0.5% |
| 640391 | Other footwear covering the ankle, leather uppers | 3.00% | 1.65% | 0.5% |
| 640510 | Footwear with leather uppers, n.e.s. | 2.90% | 1.55% | 0.5% |
| 410791 | Other leather, further prepared, equine or bovine, full grain | 2.80% | 1.50% | 0.5% |
| 420212 | Trunks, suitcases, vanity cases with outer surface of plastic/textile | 2.80% | 1.50% | 0.5% |
| 640340 | Other footwear with metal toe-cap, leather uppers | 2.80% | 1.50% | 0.5% |
| 410712 | Leather, further prepared after tanning, of bovine animals (grain splits) | 2.70% | 1.45% | 0.5% |
| 420232 | Wallets, purses with outer surface of plastic/textile | 2.70% | 1.45% | 0.5% |
| 640299 | Other footwear with rubber/plastic uppers | 2.60% | 1.40% | 0.5% |
Quirks of this sector that cost exporters money
- 01Finished leather and semi-finished leather sit in different RoDTEP slabs. Tannery exports often misclassified.
- 02IFLDP requires factory-level audit. Apply early in the year, slots fill fast.
- 03Council for Leather Exports (CLE) RCMC mandatory for most scheme claims.
- 04EU and US importers increasingly demand Leather Working Group audit certification.
- 05RoSCTL does NOT apply to chapter 42 leather goods. Some exporters mistakenly try; clean filings are faster.
Schemes that apply
Three illustrative cases from this sector
Names redacted at customer request. Recovery numbers from FY 2024-25 audits.
Rs 9,80,000 annual
Kanpur leather goods, 36 cr turnover
Finished vs semi-finished leather distinction was being filed conservatively, costing 0.4 percentage points. IFLDP grant application was also pending.
Rs 13,20,000 annual
Chennai footwear, 58 cr turnover
HS 6403 sub-codes were being applied uniformly when premium leather uppers carried a higher rate. Council for Leather Exports RCMC required updating.
Rs 5,60,000 annual
Kolkata leather garments, 22 cr turnover
RoSCTL is NOT applicable to leather (chapter 42); the firm had been incorrectly trying to file it. Cleaning that up restored correct RoDTEP at the right rate.
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