GST: Ahead of mid-night launch, massive discounts on consumer goods
Finance Minister Arun Jaitley has announced that the GST will be launched at midnight on June 30, with a program in the Central Hall of Parliament.
Meanwhile, consumer durable firms expect the market to stabilize after 2-3 months.
Most traders are now trying to sell their stock at reduced profits in order to avoid losses under the GST.
Here's all you need to know.
GST's final leg brings massive discounts on products
Getting rid of old stocks
Traders, concerned over the cash flow that might hamper during the new regime, are introducing consumer-centric offers to get rid of their goods, which if carried forward from the VAT regime to GST regime will incur them a loss of 3-4% of their margin.
The focus is to liquidate all stocks and not get any new products until the new regime starts.
Chances of panic are minimal
Consumer Electronics and Appliances Manufacturers Association (CEAMA) believes that this entire hullabaloo will continue for at the most three months and then the market will normalize on its own.
The chances of any widespread panics are less, as businesses are taking informed steps and planning their strategies well ahead. Companies are extending their support to the dealer partners to tide over to GST regime.
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