Chennai: Not a cracker of sales this Deepavali

Chennai: The impact of the Goods and Services Tax (GST), which had earned the wrath of numerous industry players across the city, can be felt yet again in the pockets of usually bustling sweet and cracker outlets during the festive season,  

The manufacturers of sweets and firecrackers who usually see a humongous rise in their sales during the festive season have expressed distress on steep fall in their sales this year. Customers too expressed their regret on shelling extra bucks.

While 5 per cent of GST has been levied on sweets, on savouries it is 12 per cent. “Though the immediate effect of GST saw a dip in the rate of sales, we had anticipated a rise during the festival season. But during this Deepavali, the number of patronages remained the same, but the sales had obviously dropped,” said, T. Nagar branch in charge at Grand Sweets and Snacks.

Concurring in her views, a sweet manufacturer of a famous outlet in Chennai, said despite seeing a decent number of customers as in the years before GST, sweet manufacturers and retailers expressed concern in the amount of sweets purchased by each. Although the number of people purchasing sweets will not have a reduction due to GST, it is the amount of sweets each customer pays especially the bulk orders will see a drop.

Like sweets, firecracker is another essential commodity of the season. With 28 per cent levied as GST on fireworks, the Tamil Nadu Fireworks and Amorces Manufacturers Association (TANFAMA) communicated concern for small manufacturers. While the larger factories paid 30 per cent GST earlier they now have to pay only 28 per cent. The apprehension is for smaller ones that once paid VAT of 14.5 per cent, will now pay GST of 28 per cent.

Firecracker manufacturers and retailers said being seasonal goods the impact of GST on sales of crackers is more evident and worrisome. “ People are hesitant to buy due to the increased rates. Our orders have dipped by almost 40 per cent, forcing us to slash down the rates through offers. This, in turn, results in low profit,” said Shanm ugham Raja, Chief sales officer at Sai Firecrackers. 

Another famous cracker manufacturer, Madras Cracker Shop said their retailers are disappointed since they have to shed in a minimum of '20,000 more than usual. 

Customers have also expressed despair in the rise in the cost of sweets and crackers. But this they say is highly unfortunate especially while purchasing sweets since people are already turning eco-friendly by not bursting crackers.