Reports note that prices across Bata outlets now cost 7 per cent less, as the company is absorbing the differential to pass on savings to consumers
Proactively implementing the Goods and Services Tax (GST) rate cut on footwear priced below Rs 1,000 before the official rollout, Bata India, a footwear major, has extended the benefits of the move to the consumers and has brought the Bata price promise initiative.
The reports noted that the prices across Bata outlets now cost 7 per cent less, as the company is absorbing the differential to pass on savings to consumers. The GST council approved the reduction in footwear in the recently concluded meeting. The company is aiming to ensure that the festive shopping starts early and becomes more affordable for buyers.
For an industry that is highly labour-intensive and a vital part of India’s manufacturing economy, the reduction provides timely relief and helps organised players like us compete more effectively with unorganised markets, experts noted.
With the Goods and Services Tax (GST) council’s decision towards rationalisation of the current four-tiered tax rate structure into a two-rate structure, Diwali cheer has come early for the Indian middle class, as a range of items related to daily essentials to big-ticket buys have seen the rates get slashed.
Experts added that lower GST rates will encourage consumers to spend more, increasing market demand, which in turn will directly benefit small shopkeepers, retailers, and wholesalers. With rising consumption, industries will need to increase production, leading to more jobs and enhanced industrial activity,
