Pre-GST sale: 'July 1 is just the beginning'
Just ahead of GST, retailers are offering heavy last-minute deals to clear stocks. In online space, Flipkart started its pre-GST sale from midnight on June 29. Amazon has been running a sale since before, with discounts of upto 50%. On Paytm, traffic increased three times last month. Meanwhile, Big Bazaar will open its doors on midnight of June 30 with discounts of upto 22%.
White goods and apparel
Online and offline retailers are selling white goods like air-conditioners, refrigerators, washing machines at 10-40% discounts while apparel sellers are offering discounts up to 50%. White goods fall in the 28% GST bracket compared to the current incidence of 21-23%, including VAT and excise duty.
Mercedes, Audi, BMW, Bajaj Auto announce discounts
Mercedes-Benz and BMW announced discounts ranging between 2-9% on locally-assembled models. Audi India reduced the prices of A3, A4, A6, and Q3 by Rs. 2.3-7 lakh (varying). Bajaj Auto motorcycles are being offered at a discount up to Rs. 4,500. Maruti Suzuki is offering Rs. 10,000-35,000 discounts on Wagon-R, Swift, Celerio, and Alto. Hyundai dealers doubled the discounts on Eon and Grand i10.
Paytm announces pre-GST clearance sale
Paytm Mall is hosting a three-day pre-GST clearance sale from 13-15 June. More than 6,000 retailers are offering discounts on over 500 brands. The company said discounted items include TVs, premium laptops, consumer durables, DSLRs with up to Rs. 20,000 cashback. Products like mobiles, footwear, bluetooth speakers, and accessories are available at up to 50% off along with up to 25% cashback.
Offline Stores: The hassle of filing tax credit claims
A Delhi-based offline electronics store with three branches is offering 10-40% discount on air-conditioners and refrigerators. A manager said they "have to" offer deep discounts otherwise they may face problems later. He added post-GST rollout, retailers might face issues in maintaining and producing tax receipts for claiming credit on old stocks and hence it is easier to clear them.
Pepe Jeans offers 50% discount
Pepe Jeans' Ahmedabad-based factory outlet has reportedly hiked discounts on apparel from 40% to 50%. However, 'Bandhej', another apparel brand based in Ahmedabad, said they have not planned any pre-GST sales or discounts. According to them, most apparel brands always have inventory with them and these sales/discounts show desperation or lead to over-production and more stock to dispose.
GST wouldn't impact apparel business much: Online seller
An online merchant said GST wouldn't impact the apparel business much; most merchants are simply clearing old stocks. Readymade garments below and above Rs. 1,000 fall in the 5% and 12% GST brackets, respectively. Currently net tax incidence on readymade garments is around 7%.