As the D-date for GST roll-out gets closer, companies are resorting to selling goods at throwaway prices. Discounts have been announced on a range of products, from cars, mobile phones and air-conditioners to footwear, laptops and other items.
Online marketplace Paytm is offering "Pre-GST" sale that encompasses almost 6,000 retailers and close to 500 brands.
Many automakers in India have already announced the revised prices of their model range by passing on benefits of the Goods and Tax Service (GST) to consumers. Luxury carmakers like Audi, BMW, Tata Motors-owned Jaguar Land Rover (JLR) and Mercedes-Benz have slashed the prices of their models by up to Rs. 10 lakh, while Ford and Hyundai are giving discounts of up to Rs. 30,000 and Rs. 2.5 lakh, respectively.
Two and three-wheeler major Bajaj Auto have also reduced the prices of its bikes by up to Rs 4,500 with immediate effect. The price reduction is by up to Rs. 4, 500 across its range of motorcycles, starting from the entry level CT 100 priced at Rs 35,183 to the top-end Dominar 400, tagged at Rs 1.53 lakh (ex-showroom Delhi).
Brands like Puma are offering an extra 10 percent discounts on the flat 40 percent while Flying Machine is offering a discount of up to 50 percent. Levis is also offering a 'buy-two get-two free' scheme on its range of offerings.
"This pre-GST Sale will see customers buy items including televisions, consumer durables, premium laptops and DSLRs at up to Rs 20,000 cash-back, while products such as Bluetooth speakers, footwear and accessories will be sold at up to 50 per cent off plus 25 per cent cash-back. 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," the Indian Express quoted Paytm as saying.
E-commerce firms such as Paytm and ShopClues are also organising programmes for vendors and sending updates to keep them posted on the Goods and Services Tax (GST) regime that will be implemented from July 1 2017.
GST Council meeting on June 18
The 17th meeting of the Goods and Services Tax (GST) Council scheduled for Sunday (June 18) could throw some surprises, if the agenda is anything to go by.
""Main agenda items of the 17th GST Council Meeting include confirmation of the minutes of the 16th GST Council meeting held on 11th June, 2017, approval of draft GST Rules and related Forms for (i) Advance Ruling, (ii) Appeals and Revision, (iii) Assessment and Audit, (iv) E-Way Bill & (v) Anti-Profiteering, and Fitment/adjustment of GST Rates on certain items among others," the finance ministry said in a statement.
Last Sunday, the GST Council had revised tax rates on 66 goods and services items, including cinema tickets, incense sticks, insulin, cashew and job work in textiles, printing, jewellery. computer printers, school bags, cutlery and leather.
"The GST council has revised tax levels on 66 out of 133 representations," Jaitley had said after the meeting, on June 11.
The Council also raised the limit for composition scheme from Rs 50 lakh to Rs 75 lakh. "This should mean that a significant number of SME sector players should benefit from not having to meet with detailed compliances under GST and also having a less financial burden, on account of GST," Mahesh Jaising, Partner, Indirect Tax, BMR & Associates LLP, said in a note.
