By Porisma P. Gogoi
New Delhi, June 22: With less than 10 days to go for the biggest indirect tax reform to take effect, retailers are rushing to clear their stocks by offering huge discounts ranging from around 30 per cent to 60 per cent.
Players in the field of apparels are also following the same path.
“There are going to be different tax brackets. For apparels, it is five per cent for products below Rs 999 and 12 per cent above that range. We are working towards adjusting to the GST. It will be a teasing stage initially,” said Farida Mahabat, Marketing Head of fashion retail store Splash India.
The GST Council has levied tax on textiles, such as yarn and fabric cotton at the lower slab of 5 per cent, apparels up to Rs 1,000 per piece at 5 per cent while costlier readymade garments would attract 12 per cent rate.
The GST tax rate on footwear costing more than Rs 500 has been fixed by the council at 18 per cent. At present, footwear less than Rs 500 is taxed at 9.5 per cent.
Gupta added: “The prices of goods will increase because, first, the brands will increase their prices. Secondly, the discounts offered now will not be given at that time. So obviously, there is a huge rush of customers right now.”
Singh, however, said there won’t be too much of a difference. “The prices are not really going to change. It’s only the customer’s perception that the prices will go up later,” Singh asserted.