India has just implemented its most significant tax simplification since the original GST rollout in 2017, fundamentally reshaping how export goods are taxed and how Indian suppliers compete globally. Effective from September 22, 2025, the Goods and Services Tax (GST) structure has been consolidated to two principal slabs—5% and 18%—with most everyday manufactured goods, including leather, handicrafts, home decor and fashion items, now benefiting from the reduced 5% rate. This reform is designed to cut input costs, ease compliance and boost India’s export competitiveness, offering international buyers more affordable pricing direct from trusted sourcing partners.
At the same time, global trade has seen waves of new and increased import tariffs, particularly in major markets like the US and Europe. Recent policy shifts—especially in response to supply chain disruptions and geopolitical tensions—mean that understanding current tariffs and GST rates is essential when budgeting landed costs for any sourcing project. For international buyers, this dual shift presents a rare moment: Indian goods are now cheaper at the source and with Panoramic Sourcing, can be expertly classified by correct HS code to maximize possible cost savings and compliance.
The table below summarizes the latest GST cuts, HS codes, and reference import tariffs for key export categories. This will help global buyers make informed choices and source with confidence from Panoramic Sourcing.
Updated GST and Tariff Rates (India, Effective September 2025)
| Product Category | Typical HS Code Range | Previous GST (%) | New GST (%) | Reference Tariff %* (select markets, avg.) | Sample Products |
| Leather goods | 4202, 4203 | 18 | 5 | 8–16 (USA/EU, as of 2025) | Bags, wallets, belts, gloves |
| Fashion accessories (leather/other) | 4202, 4303, 6107, 7117 | 12/18 | 5 | 6–20 (varies by material/country) | Scarves, costume jewelry, hats, clutches |
| Handicraft wooden articles | 4419, 4420 | 12 | 5 | 0–12 (most developed markets, MFN rate) | Boxes, trays, carved decor |
| Handicraft metalware | 8306, 7326 | 12 | 5 | 4–10 | Statues, lamps, wall art |
| Home decor (multi-material) | 9403, 7009, 7013, 6912 | 12/18 | 5 | 2–16 | Candle stands, vases, cushions, artware |
| Textile crafts (home/fashion) | 5701, 6304 | 12/18 | 5 | 4–12 | Rugs, throws, shawls, wall hangings |
| Handmade furniture | 9403 | 12 | 5 | 0–4 | Tables, chairs, cabinets (non-chapter 94) |
| Ceramic/Glass handicrafts | 6913, 7013 | 12 | 5 | 2–10 | Pots, figurines, decorative ware |
- *Tariff %: Varies by destination country, most-favored-nation (MFN) or FTA rate. Check your local import duties.
What Do the GST and Tariff Cuts Mean for Global Buyers?
- Panoramic Sourcing ensures HS code compliance for every product, making import documentation and tax savings seamless.
- Lower GST makes Indian goods cheaper at source and improves landed price competitiveness.
- New GST (from Sep 22, 2025): Most leather, handicraft, home decor and fashion export categories now only attract 5% GST at export.
- Buyers benefit from professional documentation, lower ex-factory prices and smooth customs processing when exporting via Panoramic Sourcing.
Why Source Your Handcrafted Goods from Panoramic Sourcing?
- Expertise: Clear and up-to-date advice on compliance and documentation, including HS code mapping and GST credits.
- Product Diversity: Leather, textile, wood, metal, glass, and mixed-material decor, all directly from skilled Indian makers.
- Cost Savings: Lower GST rates plus competitive tariffs mean greater margin, higher price advantage.
- Process Assurance: Panoramic Sourcing supports every step, from sourcing to export paperwork to doorstep delivery.
For a custom quote or to check the latest HS code and GST eligibility for your category, contact Panoramic Sourcing today.
Conclusion
India’s 2025 GST reforms, paired with clear knowledge of current tariff rates, present global buyers with a unique opportunity to optimize cost and compliance when sourcing leather goods, handicrafts, fashion accessories, and home decor. By working with Panoramic Sourcing, buyers not only benefit from reduced GST rates and accurate HS code classification but also gain an edge in navigating today’s complex trade environment. Now is the ideal time to explore Indian-made products and unlock more value for your business through a trusted sourcing partner.
Frequently Asked Questions (FAQ)
Q1: What is the new GST rate for exported leather goods and handicrafts from India in 2025?
A: Under the latest reforms effective from September 2025, most leather goods, handicrafts and similar products now attract only a 5% GST at export, a significant drop from previous higher rates.
Q2: How do tariffs affect my total landed cost when importing from India?
A: Tariffs, set by the destination country, are applied on top of invoice value and GST-free export price. The rates vary by product and country—see our table above for typical ranges. Accurate HS code classification helps ensure you pay the correct (and possibly the lowest applicable) tariff.
Q3: Can Panoramic Sourcing help with documentation and HS code selection?
A: Yes, Panoramic Sourcing provides professional HS code mapping and documentation for every export, ensuring compliance, transparency and maximized cost savings.
Q4: Are the new GST rates automatically applied to all export shipments?
A: Yes, the revised GST rates are mandated by the Indian government and apply automatically to eligible items from September 22, 2025, onward.
Q5: How do I get a custom quote or check GST/tariff eligibility for my sourcing needs?
A: Reach out to Panoramic Sourcing with your product details. Our team will provide a detailed breakdown, ensuring accurate GST, tariff rates and optimal sourcing solutions.