GST brings festive cheer; retailers offer discounts to clear stock

Even though the harsh summer is about to give way to the monsoon, shopping for your next air-conditioner could be a lot more cheaper if you buy before GST kicks in.

Retailers of white goods and consumer durables are offering hefty discounts to customers as they look to clear the old stock before the Goods and Service Tax comes in from July.

Discounts on consumer durables

According to a report in Business Standard, Nilesh Gupta, MD, Vijay Sales said, “This is the first time that we’d be offering discounts as much as 25-30 per cent in the month of June on compressor-based products such as refrigerators and air-conditioners. These discounts will also be extended to other categories such as TVs and washing machines.”

Vijay Sales operates multi-brand retail stores for consumer durables in cities like Delhi, Mumbai, Pune, etc.

In April and May, consumer goods retailers record the highest number of sales due to onset of summer in India. In June, however, sales cool down as the summer approaches its fag end.

Retailers claim the ambiguity on the fate of current and transitional stock under the Goods and Service tax has pushed them into clearing old inventory. Retail chains selling electronic goods are luring customers with huge discounts.

The GST Council on June 3 agreed to increase input credit to 60 per cent for products in the GST slab of 18 per cent and more. Consumer goods and electrical appliances fall under the 28 per cent GST slab.

The Council also proposed allowing 100 per cent credit in case of high-value items priced above Rs 25,000 based on the tracking of the product.

Discounts on cars

Meanwhile, several luxury car-makers are also offering heavy discounts on before GST kicks in from July.

Mercedes-Benz India has reduced prices by up to Rs 7.5 lakh of its locally assembled cars and SUVs. Its nine ‘Made in India’ models like CLA, GLA, C-Class, E-Class, S-Class, GLC, GLE, GLS and Mercedes-Maybach S 500 gets the price benefit from the new GST regime and get more affordable.

Jaguar Land Rover has also brought down prices of three of its models in India by up to Rs 4 lakh. Audi slashed prices of its cars by up to Rs 10 lakh. Isuzu Motors India is offering discounts of up to Rs 1.5 lakh on its models such as the newly-launched MU-X and the V-Cross.

[Copyright By  IST ]