Most apparel stocks were trading higher on Thursday led by Trent Ltd., and Arvind Fashion Ltd., after the Goods and Services Tax council approved lowering the GST rate on footwear and apparel priced up to Rs 2,500 to 5%.
The GST Council, chaired by Finance Minister Nirmala Sitharaman, on Sept. 3, announced a sweeping cut in tax rates on daily essentials at its 56th meeting. In a press conference, FM said that GST on a wide range of commonly used products has been brought down to 5%, slashed from the earlier 18% and 12% slabs.
The 56th GST Council, decided to raise the threshold for footwear and apparel in the 5% slab to Rs 2,500 per piece, from Rs 1,000 per piece. Currently, footwear and apparel priced up to Rs 1,000 are taxed at 5%. Beyond the threshold, 12% Goods and Services Tax is levied.
Apparel Stocks Trade Higher
Trent Ltd., led the rally, as the stock was trading higher at 2.30% so far at 9:55 a.m. It was followed by Arivind Fashion Ltd., that was trading 1.70% higher. Shares of V2 Retail Ltd., and V Mart Ltd., were trading 1.20% and 0.25% higher, compared to 0.79% advance at the NSE Nifty 50. Aditya Birla Lifestyle Brands Ltd., was the only company that traded lower at 0.42% so far.
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