GST invoice format for a leather goods manufacturer
A leather goods manufacturer's invoice must separate products by heading. Handbags, wallets, briefcases and travel goods under HSN 4202 are taxed at 18% from 22 September 2025, as are leather belts and apparel under 4203 and other leather articles under 4205. Handbags and shopping bags of cotton or jute are listed at 5%, and so are gloves specially designed for sports. The invoice should show article code, leather type, colour, size and buyer's style references.
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Women's leather handbag, cow full grain, style LH-21
4202
120 NOS
1,850.00
2,22,000.00
18%
Men's leather wallet, bi-fold, style MW-07
4202
500 NOS
320.00
1,60,000.00
18%
Leather belt 35 mm, buffalo, sizes 32-42
4203
400 NOS
260.00
1,04,000.00
18%
Jute shopping bag with leather trims
4202
1000 NOS
140.00
1,40,000.00
5%
Cotton canvas handbag with leather handle
4202
600 NOS
210.00
1,26,000.00
5%
Taxable value
₹7,52,000.00
GST (CGST + SGST, or IGST if inter-state)
₹1,00,780.00
Invoice total
₹8,52,780.00
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a leather goods manufacturer invoice needs
Article and style code
Leather goods are ordered by style. A style code ties the invoice to the buyer's sample approval and makes repeat orders easy.
Leather type and finish
State cow, buffalo, goat or sheep leather and the finish, such as full grain or nubuck. Leather type drives price and is the first thing a buyer checks.
Outer material for bags
For bags, state leather, cotton, jute or synthetic. The outer material decides whether 18% or 5% applies to handbags and shopping bags.
Colour and size
Record colour and size, especially for belts and garments. Mixed colours in one lot cause receiving problems if they are not listed.
Brand and labels
Note whether goods carry the buyer's brand. It helps separate private-label manufacturing from own-brand sales.
Export or domestic
Mark export invoices clearly with LUT or IGST details. Leather goods units often export, and the invoice wording differs.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
GST rules that matter for a leather goods manufacturer
Material decides the bag rate
Notification 9/2025-Central Tax (Rate) lists handbags and shopping bags of cotton (4202 22 20) and of jute (4202 22 30) at 5%, while trunks, suitcases, handbags and similar containers of heading 4202 generally fall in the 18% schedule. A bag's classification depends on its outer surface material. A jute bag with small leather trims remains a jute bag, but a bag whose outer surface is mainly leather is a leather bag at 18%. Describe the outer material in each invoice line.
Belts, apparel and other leather articles
Articles of apparel and clothing accessories of leather, including belts and leather jackets, fall under 4203 at 18%, except gloves specially designed for sports, which are at 5%. Other articles of leather under 4205, such as straps and technical leather items, are also at 18%. Finished leather bought as an input under headings 4107 and 4112 to 4114 is listed at 5%, so units selling mostly 18% goods usually accumulate no inverted duty credit.
Exports under LUT
Many leather goods units export. Exports are zero-rated: you can export under a letter of undertaking without paying IGST, or pay IGST and claim a refund. The export invoice must state 'supply meant for export under LUT without payment of IGST' or the IGST paid, and carry the shipping and port details once available.
Job work for stitching and finishing
Cutting and stitching are often done by small job workers. Send materials on delivery challans under section 143, and record their return within one year. Job workers bill only for their labour.
Leather waste and offcuts
Cutting leather produces offcuts and shavings that are sold to makers of small leather articles or to leather board units. Parings and other waste of leather that are not suitable for making leather articles, along with leather dust and powder, fall under heading 4115 and are listed in the 5% schedule. Offcuts that are large enough to be used for small goods may be classified differently, so describe the waste honestly. Invoice each sale of waste separately so that it appears in your turnover and stock records rather than disappearing as cash income.
Common billing mistakes
✕Charging 18% on cotton or jute handbags that qualify for 5% under the specific entries.
✕Calling a mostly leather bag a 'jute bag' because of a jute lining, which misstates the outer material.
✕Leaving out the leather type, so the buyer cannot verify full grain versus corrected grain.
✕Exporting without the LUT declaration on the invoice.
✕Selling leather offcuts and shavings without invoices, which leaves a gap between leather purchased, goods made and waste sold that an auditor will notice.
✕Mixing domestic and export lines on one invoice, so the LUT declaration and IGST treatment are unclear.
Leather goods manufacturer GST invoice: FAQ
What is the GST rate on leather handbags?
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Leather handbags under heading 4202 are in the 18% schedule from 22 September 2025. Only handbags and shopping bags of cotton or jute are specifically listed at 5%.
Are leather belts taxed at 18%?
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Yes. Leather belts are clothing accessories of leather under heading 4203, which is in the 18% schedule.
What GST applies to finished leather I buy?
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Finished leather under headings 4107 and 4112 to 4114 is listed in the 5% schedule of the notification.
Can I export leather goods without paying GST?
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Yes, if you have a valid letter of undertaking for the financial year, you can export without paying IGST. The invoice must state this, and the shipping bill must match the invoice.
How do I bill samples sent to foreign buyers?
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Samples sent free to foreign buyers are usually sent on a delivery challan or a commercial invoice marked 'no commercial value' with the customs requirements. Keep a record in your stock books, and remember that input tax credit on goods given free as samples may be blocked.