Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessMarkets

Footwear stocks in focus, Khadim, Liberty, Mirza up 4-15% on likely GST relief

The government may also increase the 3 percent limit on duty-free imports to 5 percent, a CNBC-Awaaz report has said.

September 13, 2019 / 03:13 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Some footwear stocks made healthy gains on September 13 after media reports suggested that the government was looking to provide relief to the leather industry.

“The finance ministry is working with the department of industrial policy and promotion (DIPP) to provide incentives to the leather industry. The proposals include goods and service tax (GST) reduction and export sops,” CNBC-TV18 said in a report.

The labour-intensive industry has interests in export and domestic market and the government believes that an intervention could have a multiplier effect, the report added.

Khadim India rose 15 percent, Liberty Shoes 5 percent and Mirza International gained 4 percent in intraday trade. Bata India, too, was trading marginally in the green.

The report added that the government was weighing a proposal to bring down GST rates on footwear that cost more than Rs 1,000.

While department for promotion of industry and internal trade and the finance ministry were in talks, it is the GST Council that will have the final say on rate reduction.

The finance ministry and commerce and industry ministry have jointly worked out a proposal for the sector and shared it with the PMO, a CNBC-Awaaz report said.

As part of the proposal, the government may consider increasing the 3 percent limit on duty-free imports to 5 percent.

The government may also reduce GST on raw materials for footwear, while another proposal could push for reducing the 18 percent GST to 12 percent on footwear priced above Rs 1,000, the report added.

Moneycontrol News
first published: Sep 13, 2019 01:15 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347