Mumbai, Sept. 4 -- Apparel retailers and clothing associations said placing apparel and footwear in distinct slabs based on their prices may dent the sector's growth, which is already reeling from greater competition and high input costs.

The move could impact more aspirational middle-income consumers who are increasingly buying into branded clothing.

Some retailers told Mint they will pass on higher GST rates to consumers, while others are holding on to lower prices until the festival season is over.

In revised GST slabs announced late Wednesday night, the government has increased GST on articles of apparel and clothing accessories with a sale value exceeding Rs.2,500 per piece to the 18% tax slab from the earlier, lower 12%. This cou...