Retail stores and e-commerce websites have announced big discounts on electronics, home appliances, and more ahead of the implementation of Goods and Services Tax or GST from July 1.
Though sales are generally announced before Diwali, retailers have declared major discounts in June fearing a major dip in sales next month as electronic items will get more expensive due to the rollout of GST and the costs associated with making old stock compliant with the new indirect tax regime.
Prices of items like LED televisions, air conditioners and washing machines have been slashed the most as they fall in the 28 per cent GST slab, a jump from the current 23 per cent tax rate. Retailers are announcing hefty discounts to clear inventories ahead of the GST rollout, say some analysts.
Paytm Mall, a unit of digital payments platform Paytm, has launched a clearance sale, in which its merchants or authorised retailers are offering discounts and cashbacks on many items including TVs, laptops, phones, ACs and refrigerators.
Meanwhile, the GST Council last week lowered tax rates for 66 items, placing products such as cutlery, pickles, ketchup, mustard sauce and toppings at a lower tax slab of 12 per cent compared with 18 per cent earlier.
By Baishakhi Dutta