MUMBAI: Shares of athleisure companies have jumped after the GST Council, chaired by Finance Minister Nirmala Sitharaman, on Wednesday approved a much-awaited cut in GST rates on footwear and apparel priced up to ₹2,500.
The new structure, effective from September 22 (Navaratri), is seen as one of the most significant reforms since the GST rollout in 2017. At present, only products priced up to Rs.1,000 fall under the 5% bracket, while those above the threshold attract 12%.
This decision is part of a broader tax simplification, where four slabs (5%, 12%, 18%, and 28%) were merged into just two slabs: 5% and 18%.
The change is expected to improve affordability for consumers and stimulate greater demand in the value-to-premium segment. It is also likely to provide much-needed relief to domestic footwear manufacturers and organised retail players. In addition, the timing of the reform is set to re-energise consumption in the footwear category during the upcoming festive and wedding season.
Commenting on the revised GST structure, Louis Stitch CEO Amol Goel said: “The GST rate cut to 5% on footwear and apparel priced up to Rs.2,500 is a landmark step that will democratize access to quality fashion. For consumers, it means greater affordability; for manufacturers and retailers, it opens up stronger demand, especially in the value-to-premium category where India’s aspirations are rising fastest. This move is timely, as it will re-energize festive and wedding season buying while giving domestic brands a competitive edge against imports. We see this as a catalyst for sustainable growth across the footwear industry, encouraging innovation, scale, and wider adoption of Indian premium brands.”
