New Delhi, Oct. 20 -- The recent rationalisation of Goods and Services Tax (GST) is expected to add about 200 basis points to the revenue growth of India's organised apparel retail sector this fiscal, keeping it steady at 13-14 per cent for the second straight year, according to a Crisil Ratings report.

The shift to a uniform 5 per cent GST on apparel priced below Rs 2,500--from a dual structure of 5 per cent below Rs 1,000 and 12 per cent up to Rs 2,500--is expected to drive demand in the mid-premium segment. Alongside, the fast-fashion and value segments are projected to continue leading growth.

While the GST hike from 12 per cent to 18 per cent on apparel priced above Rs 2,500 has dampened demand in the premium segment--affecting wed...