The recent goods and services tax (GST) rationalisation is set to lift revenue growth of organised apparel retailers by about 200 bps this fiscal, keeping the topline steady at 13-14 per cent for the second financial year in a row, a report said on Monday.
The GST rate cut on apparel priced below ₹2,500 is likely to lift demand in the mid-premium segment, while the fast fashion or value segment will continue to drive the momentum, Crisil Ratings said in a report.
Though limited, the GST relief provides timely support to sustain growth, the report stated.
The uniform 5 per cent GST rate -- versus the previous dual structure of 5 per cent below ₹1,000 and 12 per cent between ₹1,000 and ₹2,500 -- has widened the consumption base, it added.
Conversely, Crisil Ratings said, the increase in