- The government has reduced GST rates across various sectors, leading to lower prices starting September 22. This move is expected to help FMCG companies maintain more of the gross price charged to consumers in the short term and potentially increase demand in the medium term. Retailers like DMart, Vishal Mega Mart, and Star, along with quick commerce platforms, are anticipated to benefit significantly. For apparel and footwear, items priced between Rs 1,000 and Rs 2,500 will now incur a 5% GST, while those above Rs 2,500 will face an 18% rate. This change is slightly favorable for companies like Trent, Aditya Birla Lifestyle Brands Ltd, and Aditya Birla Fashion and Retail, which have a significant portion of products priced above Rs 1,000. Value retailers with most inventory below Rs 1,000 will see little impact. Footwear companies such as Liberty, Campus, and Metro will also be affected. Quick-service restaurants will benefit from GST cuts on inputs, improving their gross margins, with Jubilant expected to gain the most.
Source: timesofindia.indiatimes.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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