The revolutionary Goods and Service Tax (GST) bill, rolling into effect in just 15 days, has triggered retailers into giving colossal discounts to clear their inventory before the start of the new indirect tax regime.
Though retailers across various verticals have their work cut out, and are forecast to incur huge losses during this period, customers are in for a treat. Not only brick-and-mortar outlets, but sellers on e-commerce portals have been forced to offer discounts to clear old inventory, and not be burdened by the 40 per cent load of Central GST.
With discounts for some goods exceeding 50-60 per cent, these 15 days won’t be a bad time for you to fish online, or take a leisurely saunter to the nearby mall.
The Economic Times have reported a complete list of discounts customers can avail during this glorious period. From smartphones to vehicles, here is the complete list below:
“White goods” or costly home appliances are up for grabs during this period; discount ranges start from 20 per cent and go up to 40 per cent, says the ET report.
Among these royalty goods, you will find television sets, refrigerators, air conditioners and washing machines. However, the discounts are expected to vary, based on the life of the stock and its cost price.
The average discount, identical among the brands offering the rebates on the aforementioned goods would be ranging from 10 per cent to 15 per cent. But it is expected to rise three-fold as we approach July 1.
Related: What is GST and how will you benefit from it?
Some of the known brands that are offering such discounts are Samsung, Panasonic, Hitachi and Videocon. These companies have come up with promotional offers, gifts, and even extended warranties to boost sales adds the report. Some companies like LG are offering lucrative EMI schemes on select products as well.
Some of the leading brick-and-mortar retailers have also been offering massive discounts. In Mumbai, Kohinoor, a leading electronics outlet in the city, is offering nearly 40 per cent discounts, adds the ET report.
Another major multi-brand retailer, Vijay Sales is also offering reductions of approximately 25 per cent to 30 per cent on compressor-based items such as refrigerators and air-conditioners. Consumer durables major Samsung is placing their bets on an extended two-year warranty along with a free Airtel DTH connection with a two-month subscription, confirms the report.
Paytm Mall, which is its own online marketplace had recently launched a sale from June 13 to June 15 on electronics and other large-scale appliances. If you were lucky enough to have taken part in that, be ready to win a cashback of up to Rs 20,000 on items such as laptops, consumer durables, and other electronics.
Cars and Bikes
With the GST tax slab for vehicles and luxury bikes at 28 per cent – apart from additional cess – it is an ideal period for purchasing a vehicle. It has come to light that several carmakers such as Hyundai, Mahindra and Ford are offering hefty discounts on models to clear old stocks.
A vast range of discounts under its ambit, as the South-Korean vehicle manufacturer is offering concessions in the range of Rs 25,000 for the i20, whereas the classy SUV Santa Fe have got price cuts up to Rs 2,50,000.
Apart from these cars, others that have been discounted are Eon (Rs 45,000), Rs 62,000 to Rs73, 000 on the Grand i10, approximately Rs 80,000-90,000 for the Verna, and the Hyundai XCent will be available at Rs 25,000 lesser and will continue till July 26.
Related: GST rates on 66 items revised by GST Council
The country’s largest auto manufacturer Maruti Suzuki is offering discounts of up to Rs 25,000-Rs 35,000 on Alto and Swift vehicles.
Another industry major, Mahindra is offering discounts on some select models such as the Scorpio (Rs 27,000), Rs 72,000 on the KUV100 and Rs 90,000 on the XUV 500. Honda, the Japanese manufacturer, is tackling the hurdle of clearing old stocks in a unique way – it has given reportedly assurances to customers that it will provide due compensation in case of depreciation in vehicle price.
Bigger players in the pond have also not shied away from lowering vehicle prices, in what car manufacturers are believed to be suffering losses of at least 6 per cent.
German car builder Volkswagen is believed to be giving away discounts of up to Rs 76,000-1,00,00 on its trademark hatchback Polo and the mid-ranged sedan Vento, however, this benefit can be availed if bookings are completed by June 20 and subsequently billed by the last day of this month. The company is also offering a reduced interest rate of 7.49 per cent, free insurance, roadside assistance, and three years extended warranty as ancillary amenities.
Nissan, too, has listed discounts for its SUV Terrano (Rs 80,000) and Rs 25,000 on the small hatchback Micra. Another global player, Ford has also joined the discount league, offering up to Rs 20,000 to Rs 30,000 on the EcoSport and Rs 10,000 to Rs 25,000 on the Figo variant.
Mercedes-Benz India has reportedly slashed rates of select vehicles to the tune of Rs 7.9 lakh – almost all the discounted vehicles are its locally-assembled cars. Some of the made-in-India cars that are up for grabs include CLA, GLA, C-Class, E-Class, S-Class, GLC, GLE, GLS and Mercedes-Maybach S500. Another German car manufacturer Audi has slashed prices of its models in India by up to a million rupees till June 30.
BMW, on the other hand, is inclining towards better complimentary services in order to clear old stocks. They are offering customers financing at 7.90 per cent complimentary service, free insurance for the first year, and an assured buy-back guarantee, extending up to four years.
As for bikes, market major Bajaj is offering discounts on its range of motorcycles such as the CT 100 and its latest sensation, the Dominor 400, to the tune of Rs 4,500.
Clothes and apparel
Shopping zealots would also be pleased to know that their favourite brands are also under the ambit of pre-GST discounts.
Brands such as Puma and Allen Solly have resorted to increasing discounts ranges or offering freebies for goods purchased. Products of both these brands and many alike are selling at discounts of up to 40 per cent across all brick-and-mortar and online marketplaces. Some like Levis have gone a step further and are offering two free items on the purchase of two; Flying Machine fans would be glad to know that their products, during this period, is retailing 50 per cent below MRP.
Several other brands like Vero Moda, Charles and Kieth, Chemistry, Forever 21 have also offered discounts to clear off old stocks. If you are a digital shopper, discounted options on e-commerce players such as Flipkart and Myntra are as high as 50 per cent on dome brands and products.
The discounts in the clothing and apparel business are also in the backdrop of a GST norm that man-made apparel above Rs 1,000 would be taxed five per cent higher than the previous 7 per cent.
Online marketplace ignited
If you have had the time to browse to the various online marketplaces, then you know that the proximity of the discounts offered by various brands. While clothes, apparel, vehicles have received high levels of price cuts, another commodity that has witnessed significant price fall during the period are smartphones.
Paytm, on its online portal is giving a discount of 15 per cent on budgeted smartphones and the same amount of discount on devices that have a battery capacity more than 300mAh. There are provisions of up to Rs 9,000 cash back on Android smartphones such as Gionee, Vivo and other Chinese brands.
Meanwhile, top devices like the iPhone 7 are retailing at heavy discounts. For the 128GB iPhone 7, a handsome 24 per cent discounts awaits customers; the iPhone 7 32GB, on the other hand, is retailing at Rs46,182 – almost Rs 14,000 less than the MRP. The iPhone 6s as also been discounted by Rs 10,000 during the brief period.
In addition to this iPhone galore, Paytm is further offering cashback on the discounted prices. The iPhone 7 (Red) is also retailing almost Rs 10,000 lesser than its original tag. On Paytm, there are sizeable cashback of up to Rs 20,000 on Lenovo laptops, DSLR cameras and Rs 10,000 on refrigerators, TVs and air-conditioners.
Footwear and other apparel are also selling at discounted price on Paytm’s online marketplace.
Up next Flipkart – India’s largest marketplace is leading the digital discount bonanza as it has already initiated a fashion sale, which will last for the next couple of days. Another separate contest “bid-n-win” has also been running alongside the fashion sale and will conclude on June 18.
Prizes up for grabs include designer Emporio Armani watches worst Rs 13,995 and Victorinox bag worth Rs 15,960. Similarly, there is a slew of other contests that the e-commerce major has set up to clear as much inventory as possible.
Next in line is Amazon, which is giving a cashback of 16 per cent on iPhone 7 and 7 Plus during its Big Sale day. A 35 per cent peak rebate on monitors and desktops is also in place. From June 23-June 25, Amazon will offer discounts up to 80 per cent on clothing, reported ET.
While the brick-and-mortar and online market retailers make desperate attempts to cut down losses and clear inventories, it is the customer who should benefit this brief period, following which experts predict an economic slowdown.
[Copyright By Times Now]