Chennai: Call it pre-GST Dhamaka. With rates of electronic goods and wristwatches set to increase post-July 1 when the Goods and Services Tax (GST) comes into force, retailers are trying to milk the situation by offering huge discounts to customers.
And as expected, there is a mad rush at electronics appliance stores across the state. Not just electronic goods, almost every item from apparels to footwear – eve-rything is available at discounted rates through Fri-day. Prices of electronic goods will witness a huge price increase of 13.5 percent as they have been classified under the highest bracket of 28 per cent.
“Sales are likely to be stopped on Saturday and Sunday – the first two days of implementation of GST. Since we would be losing money in the two days, we are pushing off all the stock by offering discounts,” a top executive of a popular electronics store said.
“We are giving 15 to 25 percent discount on most of our electronic goods as we see that after GST, the price of our products is going to be higher than the normal tax, which is now being imposed at 14.5 percent. After the price revision, the GST price of our products will be 28 percent, which is qu-ite an increase,” said a marketing executive of another prominent electronic shop.
Some of the products that have major changes in rates are instant coffee, perfumes and deodorants, fans, air conditioner, refrigerator, wrist watches, two-wheelers and four-wheelers and wristwatches. Even some branded wristwatches are offered for sale online at 80 percent.
One industry that has not been able to cash in on the pre-GST sale is the two-wheeler dealers as vehicles that were registered till now will be delivered only after July 1 from the date of order and the price will include GST.
Shrikar Jain, a bike distributor said, “During the first two days of GST implementation, no bikes will be sold as the financiers and distributors will work on the revision of prices.”
However, the GST would be imposed on products that were ordered before July 1. “I ordered Vespa, a scooter, a week ago. I will receive my new vehicle from the seller, only after July 1. I am now feeling the heat of GST, which imposes 13.5 percent more on my scooter, as I will be receiving it only after July 1” rues, a KV Gowri, a buyer.
