GST Rate Reduction, Oct. 20 -- The recent rationalisation of the Goods and Service Tax (GST) by the Centre is expected to boost the revenue of India's organised apparel retail sector by 200 basis points this fiscal, a new report has said.

According to the report by Crisil Ratings, the industry is likely to maintain a stready growth of 13 to 14 per cent in FY26 for the second straight year.

The GST Council, led by Finance Minister Nirmala Sitharaman, had last month rationalised the tax rates on apparel up to Rs.2,500 to 5 per cent. Earlier, clothes below Rs.1,000 had a 5 per cent GST, and those up to Rs.2,500 were taxed at 12 per cent.

This rationalisation is expected to drive demand in the mid-premium segment, while the fast-fashion an...