GST Effect: Retail stores and E-commerce websites are announcing big discounts ahead of the GST effect from July 1. The discount sale includes home appliances, electronics, clothes, footwear and more. The main reason for the discount is the implementation of GST which results hike in prices of electronic items. As government has declared that the Goods and Services Tax (GST) will be rolled out from July 1, retailers are gearing up sales.
Besides this, the costs associated with making old stock complaint will be included in the new indirect tax regime. As a result, the existing products will also get expensive post the rollout of GST. Prices of the items like LED televisions, Air conditions, washing machines have been cut down fearing the 28 percent GST slab from present 23 percent tax rate.
The main game behind announcing hefty discounts is to clear the present stock ahead of GST effect. Leading online retailers like Amazon and Flipkart have slashed the prices in various categories like home appliances, fashion, watches, mobile accessories, leather products, and health and beauty products.
On the other hand, Paytm mall, a digital payments platform from Paytm also has launched a clearance sale. Authorized retailers and merchants are offering discounts and cashback on many items in this clearance sale. These discounts include the products like TVs, laptops, phones, ACs, and refrigerators.
“This sale has come at an opportune time for offline retailers who are looking to offload their entire inventory before the new tax rates become effective,” Paytm said.
Recently, the GST council has slashed the taxes on 66 items, placing products like pickles, ketchup, cutlery, mustard sauce and toppings at a lower tax of 12 percent from 18 percent earlier.