Lalit Agarwal, Chairman and Managing Director, V-Mart Retail said the company would pass on the GST tax rate benefit on to their customers post rollout of India’s biggest tax reform.
He said currently the tax rate for them is around 7 percent, which post GST will be around 5 percent.
Government has decided GST on apparel below Rs 1,000 fixed at 5 percent, while readymade garments to attract 12% GST; Yarn and fabric cotton 5 percent. (Natural yarn to be taxed at 5 per cent, man-made yarn at 18 percent).
Agarwal said 78 percent of their sales comes from apparels and 88 percent of those are below Rs 1000.
According to him, the demand dynamics will change as customers will get products at varied prices.
Going forward, he is confident of 10-12 percent in same store sales growth (SSSG) on back of GST and other initiatives taken up by the government. They also plan to open around 25 stores this year along with growth from the stores opened last year, said Agarwal.