Godrej Appliances slashes prices by 10 pc after GST rate cut
These products were earlier placed under the 28 per cent tax slab, which was recently reduced to 18 per cent.
Mumbai: Consumer durables firm Godrej Appliances on Friday said it has reduced the prices of its washing machines, refrigerators, microwave ovens and chest freezers by 10 per cent, passing the benefit of GST rate cut to consumers.
These products were earlier placed under the 28 per cent tax slab, which was recently reduced to 18 per cent.
"Godrej Appliances will be passing on the full benefit of the 10 per cent reduction in GST with immediate effect, providing an increased impetus to the upcoming festive sales," the company said in a release.
It expects the new prices, coupled with festive consumer offers, good monsoon and revision of the seventh pay commission, to provide a major fillip to festive sales growth to the tune of 12-15 per cent over last year's festive season.
Godrej Appliances business head and executive vice-president Kamal Nandi said, "The revision (in GST) will make refrigerators, washing machines, microwave ovens and chest freezers more affordable, which will accelerate the penetration of these appliances."
However, he rued that air conditioners are amongst the 35 goods still left in the 28 per cent tax bracket, and said that he expects the energy efficient variants to be considered for reduction in GST rate.
"Going forward, we are hopeful of revision in the tax for air conditioners, boosting its penetration which is currently a mere 3.6 per cent," he said. Meanwhile, another consumer durable major Samsung also today announced reduction in the prices of TVs, fridges and washing machines by nearly 8 per cent.