GST hike will have an adverse impact on consumption as, furthering deepening the problem of declining consumption that has gripped the economy.
Majority of apparel that company deals with are below Rs 1,000 of product. So these are primary product on which the rate of GST is 5 percent. Almost 20 percent of the apparels are more than Rs 1,000, so the rate there would be around 12 percent right now. There are also certain items which are non-apparel, which are in the bracket of 18 percent.
Company is going through a rough patch, the market is going through a rough patch. It is being seen that the consumption has not grown too much.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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