GST Rationalisation to Boost Organised Apparel Revenue
The recent goods and services tax (GST) rationalisation is expected to increase revenue growth of organised apparel retailers by about 200 bps this fiscal, maintaining a steady topline of 13-14 per cent for the second financial year in a row, according to a report.
The GST rate cut on apparel priced below ₹2,500 is likely to boost demand in the mid-premium segment, while the fast fashion or value segment will continue to drive growth, as stated by Crisil Ratings in a report.
Though limited, the GST relief provides timely support to sustain growth, the report noted.
Author's summary: GST rationalisation to boost apparel revenue growth.