GST 2.0 boosts sales of electronic goods in festive season

 

 

The recent reduction of Goods and Services Tax (GST) on several electronic products has boosted sales significantly during the festive season. According to electronic dealers, the GST rates were slashed to 18 per cent from 28 per cent on several electronic products resulted in higher sales of 20 per cent, as compared to the previous year in the same period. The GST rate cuts were mainly on products like LED TVs, air conditioners (ACs) and dish washers.

There was positive sentiment and excitement among the consumers because of the reduction in GST rates which prompted dealers to deck up their showrooms with the latest electronic products for the festive season. It was witnessed that the sales jumped mainly for large size high end LED TV panels and air conditioners at most of the electronic showrooms in the city.

 

Apart from this, there was considerable demand for the latest home appliances, refrigerators, washing machines, mobiles, laptops, and other innovative products, experts added.

“The GST relief by the Government provided timely support to boost sales. Also, driving the heavy demand is the rising aspiration of youth, rising income levels and attractive finance options, resulting in substantial growth. Therefore, we are witnessing 20 per cent growth in sales volumes during the Diwali festive season as compared to previous year,” said Nihar Taori, Director of Taori Marketing, Dharampeth, while speaking to The Hitavada.

Taori further said already, we are seeing the effects of lower GST rates. Furthermore, as soon as the GST rate cuts were announced, the electronic manufacturers aggressively priced their products to compete with one another, Taori added.

Yesh Gandhi, Director of AKG Marketing, Dhantoli also said that the lower GST rates on several electronic products like ACs and LED TV panels drove sales by more than 20 per cent this Diwali festive season.

 

Gaurav Pahwa, Director of Lotus Electronics said that the lower GST rates on various electronic products drove sales to jump by 20 per cent, as compared to last year. After the GST rate cuts, the 1.5 tonne air conditioner with a price tag of Rs 36,000 got reduced to Rs 30,000, a huge saving of Rs 6,000.

Similarly, large size LED TV panels witnessed steep fall in prices. “The GST rate cuts came at the right time which eventually stimulated demand for electronic products,” he added.