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GST Cut On Textiles: These stocks are likely to see a reactionSuch a move would keep stocks like Vardhman Textiles, Arvind, Aditya Birla Fashion, Page Industries, Trent, Vedant Fashions and Sai Silk in focus.By Hormaz Fatakia   August 29, 2025, 8:44:59 AM IST (Published)2 Min ReadIndian textile stocks, which have been in focus due to the tariff imposition by the Trump administration on Indian exports, will again be in focus on Friday, August 29, but the trigger this time, is domestic.

Sources have told CNBC-TV18 exclusively, that the GST rate on Synthetic Filament Yarn and Sewing thread is likely to be cut to 5% from 12% earlier. In addition to this, the rates on Gimped Yarn, Metalised Yarn, Rubber Thread is also proposed to be cut to 5% from 12% earlier.

GST on products including carpets and gauze is also proposed to be cut to 5% from 12% currently, while the threshold for readymade garments, attracting 5% GST is proposed to be hiked to ₹2,500 from ₹1,000 earlier, sources said.

However, readymade garments priced above ₹2,500 is likely to attract a GST rate of 18% from the current 12%, according to the sources.

It needs to be noted that all of these are just proposals and that the final decision will be taken by the GST Council, during its meeting on September 3 and 4, 2025.

Such a move would keep stocks like Vardhman Textiles, Arvind, Aditya Birla Fashion, Page Industries, Trent, Vedant Fashions and Sai Silk in focus.

In case of these proposals coming to fruition, it would bring down costs of companies such as Vardhman Textiles, as it would bring down their costs and could potentially benefit margins.

For companies like Trent, whose products are mostly below the ₹1,000 point, a lower GST rate could potentially spur demand and also increase volume offtake.

Vardhman Textile's shares jumped 13% on Thursday on very strong volumes, while Aditya Birla Fashion's shares are out of the F&O segment and will only trade in the cash market starting today.

Textile stocks have taken a beating in the last one month, with names like Gokaldas Exports, Indo Count Industries, among others, declining as much as 15% to 20% in the last one month on worries of higher tariffs on US exports. These companies get at least 50% to 70% of their revenue from the US market.

(The GST newsbreak is by CNBC-TV18's Timsy Jaipuria.)Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsAditya Birla Fashiongst rate cuttextile stocksTrent share price