GST, weak demand, falling exports continue to hound branded apparel makers

Impact felt in Q2 financial numbers, with both turnover and net profit remaining under pressure

Branded apparel manufacturers and retailers are yet to overcome the implications of the goods and services tax (GST) rollout in July. The tax reform had directly impacted the entire textile chain due to cascading burden. And post GST, poor consumer sentiment and falling exports have only made matters worse for the business. The September quarter results of large players stand testimony to this and experts don't see better days on the horizon for them.

Branded apparels priced at Rs 1,000 or above attract 12 per cent GST, while those below this threshold suffer 5 per cent. With this levy,