• Linkdin

18% GST on footwear reduced profit for small manufacturers

23 Nov '19
1 min read
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)

Leave your Comments

Esteemed Clients

Woolmark Services India Pvt. Ltd.
Weitmann & Konrad GmbH & Co. KG
VNU Exhibitions Asia
USTER
UBM China (Shanghai)
Tuyap Tum Fuarcilik Yapim A.S.
TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
X
Advanced Search