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GST has Changed the Apparel Industry: Truth or Myth

gst impact on apparel industry

Is there a GST trouble in the land of small apparel retailers? This question is crucial as this unorganized sector of retail clothing industry constitutes an indispensable part of the Indian retail market. Before actual implementation of GST,  many had already suggested that the branded apparel makers can benefit from the 28% tax rate but, the prices of small, local apparel retail businesses can rise due to the removal of their thin margins. It’s still too early to confidently comment the situation of the clothing industry, but experts in India have been contemplating and trying to understand the countless reactions to the implementation of this tax.

Under the indirect tax regime, the retailers could usually escape the tax liability as there was no mechanism by which their actual apparel retail purchase and sale can be traced. Post GST implementation, these retailers are not able to evade tax as the complete value chain will be tracked online. This may also result in a change in the modus operandi of the apparel retail businesses working on thin margins.

Also, the industry may observe a steep rise in demand for goods as a result of re-stocking by both wholesalers and retailers. Moreover, the small apparel businessmen are more comfortable in dealing with cash. It is just not the discomfort of the clothing industry tradesmen but even certain customers are unwilling to carry out cashless transactions. It is a big worry for the retailers, with each business person thinking about what will happen to their business if they refuse to comply with GST.

Some of the reasons that are making retailers and their customers apprehensive about GST are:

  • Ignorance about GST: Change is inevitable but it does not go down well with everyone. Moreover, GST has reformed the way present India thinks about tax. It might not be wrong to think that small businessmen in the retail clothing industry and certain customers are unaware or simply ignorant about the positive outcomes of this great development.
  • Dealing in Cash: Small retail industry businesses are still very cash dependent. It is hard to convince them to switch over to cashless payment which is earning the trust of many with its quick response and secure nature in this technology-pro age.
  • Misleading Rumours: There are many unfounded rumors in the apparel market that there are 37 returns to file in this GST era in comparison rather than just 3 returns a month. It is important that people understand that GSTR-1, 2 and 3 are parts of the same monthly tax return to be filled at three different times of the month.
  • Lack of Technological expertise: Not all small apparel retailers have the technical expertise to deal with online systems. Thus, most of them might need intermediaries to take them through the registration process, adding to their registration cost. The retail industry businesses need to explore the power of a GST ready clothing store billing system for day-to-day effortless operation and round the clock management.

India, whether ready or not, is under its influence of GST. And putting GST reforms into business practice comes handy with Zopper Retail,  a reliable GST ready clothing store billing system. It understands the need of a user-friendly software system that helps build customer loyalty and increase sales. It offers the best POS  for apparel retail store that helps you manage your inventory and keeps every figure ready for reference. This apparel store POS software makes everything easy- buying, inventory management, pricing and more with the following features:


Speed up the process billing process with this clothing store POS offering newly created barcodes that can be integrated with a barcode scanner. This helps in managing more customers and enormous sales of your business.


With this apparel store POS software, every time a new inventory arrives, it is easy to create a new batch and receive updated information about different unit prices and near expiry stock.


Now, you can generate and send purchase orders to the vendors easily with this software. In this digital era, all the vendor contact details are stored in one place and can be used for any communication and follow-up via email due to this efficient clothing store POS.


Zopper’s POS for apparel retail store offers a more convenient POS interface as it is equipped with the latest technology that works both online and offline. Multiple benefits such as split payments, receive bills on paper, SMS or email, etc. can reach the customers without any hassle. Design and manage your discounts and schemes as per the need.


With this apparel store POS software, you can reward your customers by discovering the most loyal ones and rewarding them with special offers. Offer them reward points for various actions like purchase, referrals and track these points through an easy-to-use app.


Zopper Retail is a GST-ready clothing store billing system that helps you easily manage multiple outlets with real- time updates. One can remotely manage, operate and configure your business at any point of time.

Grow your apparel retail business with Zopper Retail today!

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