Home / Knowledge / News / Apparel/Garments / 18% GST on footwear reduced profit for small manufacturers

18% GST on footwear reduced profit for small manufacturers

23
Nov '19
Pic: Shutterstock
Pic: Shutterstock
As Indian customers are highly price sensitive, manufacturers of footwear—a highly capital-intensive business with tight profit margins—were pushed to absorb the 18 per cent goods and services tax in a way as not to cause a sudden increase in product prices, which further reduced profit margins for small manufacturers, says footwear seller Aprajita Toor.

Toor sells footwear for women with her namesake label.

Although the Indian government allowed input credit, footwear manufacturing being more labour-intensive as well, this benefit did not translate into much saving for manufacturers, she told Fibre2Fashion in an interview.

The footwear industry has been requesting the government to consider reducing the GST rates on footwear to 12 per cent to allow the industry to continue growing and be able to improve its position in the global market, she added.

For the full interview, please click here.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Textiles | On 16th Dec 2019

China suspends planned additional tariffs on some US items

China's Customs Tariff Commission of the State Council yesterday...

Boris Johnson. Pic: Gov.uk

Textiles | On 16th Dec 2019

Brexit imminent as Boris Johnson wins UK election

With British Prime Minister Boris Johnson winning the election on...

Pic: Shutterstock

Textiles | On 16th Dec 2019

Zimbabwe, Brazil sign agreement on cotton production

Zimbabwe and Brazil recently signed an agreement to boost cotton...

Interviews View All

Textile industry, Head honchos

Textile industry
Head honchos

Clothes are no more bound by gender

Representatives, Textile & apparel industry

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Arvind Saraf, Triveni Sarees

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Tom Adeyoola,

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

John Elmuccio,

John Elmuccio

Evolution St Louis is a company setting up a high-tech knitting facility...

Ashish M Amin,

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Daniel Kaye, RocketLife

Daniel Kaye
RocketLife

<div>RocketLife, an award-winning developer of breakthrough visual...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search