Bata’s Big Step: GST Cuts Now Mean Cheaper Footwear for You

India’s footwear market is buzzing with excitement after the latest announcement from Bata India. On September 4, 2025, the company revealed that it has started passing on the benefits of GST rationalisation even before the official rollout. The initiative, called the “Bata Price Promise,” is aimed at ensuring customers enjoy lower prices immediately.

With the GST on footwear cut from 12% to 5% for shoes priced below ₹1,000, Bata has slashed its prices by 7% across outlets. What makes this move unique is that Bata is absorbing the difference on its own, making it a strong customer-first step ahead of the festive shopping season.

What is the Bata Price Promise?

The “Bata Price Promise” is an initiative designed to extend the benefit of the GST rationalisation on footwear to customers instantly. While the new tax structure officially comes into effect on September 22, Bata has already rolled out lower prices at its retail outlets.

This means shoppers don’t need to wait until the official date to enjoy savings. Prices for footwear under ₹1,000 already reflect the 7% reduction, which translates to better affordability & early festive cheer.

GST Rate Cut: From 12% to 5%

The footwear sector has long demanded rationalisation of GST rates to make shoes and sandals more affordable for the mass market. Responding to this, the government recently announced a GST rate cut from 12% to 5% for footwear priced below ₹1,000.

For consumers, this directly lowers the price of everyday shoes, school footwear, and budget-friendly casuals. For manufacturers and retailers, it reduces pricing complexity & ensures greater compliance."

By stepping in early, Bata has set an example in the industry, showing how brands can put customer interests first.

A Customer-Centric Move

Announcing the initiative, Gunjan Shah, MD & CEO of Bata India, said:

“Our priority at Bata is to make fashion and comfort accessible to every consumer. By absorbing GST on select footwear, we are ensuring festive shopping starts early, is more affordable, and brings greater joy to our customers.”

This statement captures Bata’s strategy: aligning with consumer needs while strengthening its brand value. By passing GST rationalisation benefits to customers ahead of schedule, Bata ensures loyalty and goodwill during one of the most crucial shopping seasons of the year.

Also Read: Textile Industry Hails Revision of GST Rates: Relief for Value Chain but Anomaly in Garments Above ₹2,500

Impact on Customers

For buyers, the benefits are immediate and significant:

• Savings of 7% on footwear priced below ₹1,000.
• Access to festive shopping discounts weeks ahead of schedule."
• More affordability for households, especially for school & daily wear shoes.
• Wider accessibility as Bata operates across urban and semi-urban India.

The move ensures that both middle-class families and cost-conscious buyers feel the direct impact of GST rationalisation.

Industry Perspective

The footwear industry has largely welcomed the government’s move to cut GST. Shoes priced below ₹1,000 form a massive portion of the market, particularly in tier-2 & tier-3 cities. By cutting GST to 5%, affordability increases, and demand is expected to rise.

Bata’s proactive step also puts pressure on competitors to follow suit. Other brands may need to adjust prices quickly to keep up with the early goodwill that Bata is generating among customers.

Economic Implications

The early rollout of GST benefits by Bata has wider implications for the economy:

1. Boost to retail demand – Lower prices drive higher footfall.
2. Formalisation of market – Compliance increases as footwear moves further into organised retail.
3. Support to mass-market buyers – Households with school-going children benefit directly.
4. Increased competition – Other players may adopt similar strategies, creating more consumer benefits.

By aligning with government policy and consumer demand, Bata is setting the tone for the festive retail season.

Also Read: New GST Rates on All Cars: From Alto to Mahindra Thar and Tata Nexon

Comparison: Old vs. New GST Rates

This highlights the biggest win for budget-friendly footwear segments.

Festive Season Advantage

The timing of Bata’s initiative couldn’t be better. With the festive season around the corner, shoppers are actively looking for deals & discounts. By launching the Bata Price Promise ahead of competitors, the company positions itself as the go-to destination for affordable fashion and footwear.

Early adoption of the GST cut also ensures positive customer sentiment, driving brand loyalty and word-of-mouth publicity."

Challenges Ahead

While the move has been hailed as customer-friendly, challenges remain for the industry:

• Absorbing the GST difference may temporarily impact margins.
• Competitors may resist early adoption, creating uneven market dynamics.
• Supply chains must adapt to new price structures efficiently.

However, Bata’s strong retail presence and consumer base give it the leverage to overcome these short-term challenges.

Long-Term Benefits

In the long run, the GST cut from 12% to 5% on footwear below ₹1,000 will:

• Increase affordability for the mass market.
• Strengthen organised retail’s dominance.
• Reduce tax disputes and compliance issues in the footwear industry.
• Help brands like Bata expand further into untapped rural and semi-urban areas.

By rolling out early benefits, Bata ensures it stays ahead of the curve.

Also Read: Tax Cuts on Medicines & Devices Promise Patient Relief

Final Thoughts

The announcement that Bata begins giving GST rationalisation benefits to customers marks a turning point in the footwear industry. Through its Bata Price Promise, the brand has not only passed on the GST cut from 12% to 5% ahead of schedule but also absorbed costs to give buyers a 7% discount immediately.

For consumers, this means festive shopping begins early and is more affordable. For the industry, it sets a benchmark for how brands can respond proactively to GST rationalisation.