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Shoppers can expect to see promotional schemes and offers this month, as consumer durable companies and retailers are looking to dispose of the current stock of products ahead of the July 1 launch of the GST regime.
Nilesh Gupta, Managing Partner of Mumbai-based electronics chain Vijay Sales, said: “ As retailers are focusing on reducing their inventory, they have already started running promotional schemes to drive sales. Depending on the product category, we are running discounts in the range of 5 to 50 per cent.”
While some of these schemes are being led by companies, others are expected to be run at the dealer level. For instance, Panasonic India has announced a special consumer promotion scheme at its exclusive brand stores for this month across products. Other companies, such as LG India, are also offering attractive EMI schemes on select products for consumers.
Amitabh Reu, Head - Exclusive Channel & Corporate Sales, Panasonic India, said: “With this offer, Panasonic aims to boost sales before the rollout of GST slabs and pass on the advantage to the end customer.”
Last week, the GST Council also provided some relief. It raised the input credit tax on goods taxed at 18 per cent or above to 60 per cent for the GST liability against excise duty paid on stocks remaining with traders and retailers. For items priced at over ₹ 25,000, 100 per cent input credit will be available.
Input tax creditWhile the proposed rules will allow white good manufacturers and auto companies to avail some input tax credit on inventories, they are now working to cut down stocks with dealers and start with a clean slate under GST.
Kamal Nandi, Business Head & EVP, Godrej Appliances, said: “We are focusing on giving our trade partners sell-out support so that they can reduce their inventories by this month-end.”
Sources said companies are also working to assure their distributors that they will compensate them on the differential that they may incur, even after the input credit tax limits have been increased.
CM Singh, COO, Videocon, said the GST Council’s latest announcement has brought clarity among distributors and will enhance trade sentiment. Dealers are now focusing on liquidating their stocks, he added.
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