Fashion retailers sew GST-tinted offers this festive season

In addition to the usual festive passion at this time of the year, there is another reason that buyers can make the shopping basket hefter, or what fashion retailers hope. What will be a ‘Diwali gift’ for consumers will be a gift of navratri with the entry into force of the goods and service tax rates on September 22. The most commonly used products will see a deduction in the rate of consumption tax, festive shopping and retailers-especially clothing and shoes-navratri and Diwali sales raise their games as they get up.

Low and medium -range clothes and shoes become cheaper, while premium labels become more expensive, while retailers try to benefit from consumer momentum, they calibrate twin problems.

Retailers usually locks the inventory for the autumn-winter season months ago. The products have already reached the workshop and department stores. Multi -branded retailers are preparing to emphasize such products through in -store promotions to attract the attention of the consumer to collections that benefit from lower tax rates.

“When it comes to the night of 21 (September), reviewed prices will emerge. In the next three or four days, brands will harden their positions. It will definitely be a positive momentum, because the shoe is very good for lowered GST. Some of it has benefited. La2,500 (priced product) will have a larger yield; Those who are above this will be subjected to a little interruption. ”

GST revision

However, the timing of GST reset brings a dilemma for these retailers. Both festive collections and autumn winter stock stores in Northern India coincides with the launch of fresh inventory. Retailers say that they do not want to disrupt the new inventory by offering upright discounts.

In the revised GST signs described at the beginning of this month, the GST ratio was priced between them. La1,000 and LaWhile 2,500 falls from 12% to 5%, clothing and clothing accessories with sales value La2,500 a piece was moved from 12% to tax signs before 18%.

Although the movement is widely positive, it will put pressure on retailers to reduce prices in the above priced products. LaAccording to Jeferveries’s September 4 report, 2,500 to make them more competitive.

Products priced for the shoe industry La2,500 pairs were placed from 12% to 5% GST. Previously, 5% GST applied only to priced shoes La1,000. Shoes exceeding sales value La2,500% of 18% per dual continues to receive taxes.

Support for change

Shoe Retailer Bata India on September 4 La2,500. Buyers can benefit from 7% discount on shoe prices.

Gunjan Shah, General Manager and General Manager of Bata India, said, ız Our priority in Bata is to make fashion and comfort accessible to every consumer for every consumer. By sucking GST in certain shoes, we ensure that the festive shopping starts early, more affordable and brings more joy to our customers. ”

This year, the shopping season for Navratri/Dussehra and Diwali will extend to the end of October.

Westernwear retailer Madam said he would offer offers on some high -priced products to make it more competitive. The inventory post will present in -store promotions and hit the stores with the revised price tags on September 22.

“We have already made our sales in the middle of the season in June; now we force the new autumn winter inventory. However, after September 22, we will give an additional discount on the products La3,000, calculation boils somewhere below La2,500. Amar Jain clothes, which run stores under the brand of Madam, MD and CEO Achil Jain and the already on the ground for the inventory we can provide some discount to the consumer.

“We expect some of the GST benefits to attract consumers to our stores, so we want to make more promotion. We are still trying to understand the effect of this.” He said.