Goods and Services Tax (GST) is an indirect tax which will be levied throughout India to replace various other taxes levied by the central and state governments. The GST aims at creating a single market, removing tax barriers between states.
The GST Council’s 16th meeting was concluded on June 11, revising rates for 66 items.
Finance Minister Arun Jaitley has announced that GST will be rolled out in India on the midnight of June 30 and July 1, regardless of any further preparation from the taxpayers.
Ever since the Goods and Services Tax Council began releasing the rates on various items in May, companies ranging from e-commerce platforms and car manufacturers to apparel retailers and phone manufacturers have been bombarding registered customers and other recipients with messages, emails, and phone calls, offering attractive discounts valid till June 30, a day before the new taxation system kicks in.
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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.
Online retail giants Flipkart and Amazon have slashed prices in segments ranging from fashion, home appliances, mobile accessories, watches, leather products and health and beauty products.
Apparel giants are offering discounts up to 30-60% on their products whereas mobile accessories are being sold at discounts up to 30-40%.
A plethora of pre-GST offers have been witnessed on automobiles also. Top brands such as Hyundai, Maruti Suzuki, Nissan, Ford, Mahindra are offering big discounts to the tune of Rs. 2.5 lakh, in an attempt to clear their existing stocks before July 1 arrives.
It’s a great time for customers to flock to showrooms and get their desired products at unbelievable prices.
As per reports, high-end luxury cars such as Mercedes-Benz is also offering discount on selected cars. The company has reduced prices of locally assembled SUVs to 7.5 lakh rupees.