Campus Activewear, Bata India Jump As GST Cut Lifts Footwear Stocks

Bata India, Metro Brands, Campus Activewear, and Mirza International share price rallied sharply on Thursday after the GST Council reduced the tax rate on footwear. Campus Activewear gained the most, jumping over 10%, while Bata India rose 7.3% and Metro Brands advanced 6%.

GST Relief for Consumers and Companies

Earlier, footwear priced up to ₹1,000 enjoyed a 5% GST. Now, this benefit has been extended to shoes priced up to ₹2,500, with the tax rate cut from 12% to 5%. This change is expected to make footwear more affordable and boost demand.

Other companies, including Relaxo Footwears, Khadim India, and Lehar Footwears, also posted gains between 1% and 6%.

Wider Tax Reforms Announced

The GST Council also simplified the overall tax structure by reducing four tax slabs (5%, 12%, 18%, 28%) into just two slabs—5% and 18%. A higher 40% GST will apply to luxury and sin goods.

These changes, along with RBI rate cuts and income tax rebates, are expected to stimulate consumer spending across sectors, from essentials to cars and electronics. The new GST rates will take effect on September 22, coinciding with Navaratri.

Read More: GST New Rates: GoM Proposes 18% GST on Premium EV Cars!

Conclusion

The GST cut has given footwear stocks a strong boost, with major players like Campus Activewear, Bata, and Metro Brands leading the rally. With lower prices likely to improve demand, the footwear industry could step into a new growth phase this festive season.

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