E-commerce websites and retail stores have announced huge discounts on electronics, home appliances, clothes and a lot more post the implementation of Goods & Services Tax (GST) with effect from July 1, 2017. The reason behind this is the fear of a major dip in the sales next month as electronic items are bound to get costlier due to rollout of GST.
Prices of items such as LED televisions, air conditioners and washing machines have seen maximum discounts in the pre- GST sale as these items fall in the 28% GST slab, a 5% point jump from the current 23% tax rate.
The pre-GST clearance sale will host 6,000+ retailers across 500+ brands including all major brand labels.
Many retailers along with the online retail giants- Flipkart and Amazon have reduced prices in fashion, home appliances, mobile accessories, watches, leather products and health and beauty products segments.
Paytm Mall, a unit of digital payments platform Paytm is offering several discounts on electronics appliances from June 13 to June 15. A cashback of upto 20,000/- on items like TVs, consumer durables, premium laptops etc. is one of the many deals offered by Paytm. Alongwith a 40 percent cashback on Titan, Timex, and Giordano watches, Paytm is also offering 10,000/-cashback on all best-selling smartphones like Apple, Vivo, and Oppo. A 15% cashback on the budget smartphones like Lyf, Intex is also available.
Some analysts said that the retailers are announcing hefty discounts to clear inventories ahead of the GST rollout.
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.