GST roll out has turned a retail sales extravaganza across the country with car makers and retailers turning it into a sales pitch with huge discounts on goods based on GST rate slabs and large queues were seen from Mumbai to Bhubaneshwar and New Delhi to Bangalore on Friday night.
Beginning today, Saturday, July 1, 2017, India switched over to new tax structure called the Goods and Services Tax (GST), bringing more than one billion population under one tax regime and controlling $2billion market under one federal structure, surpassing the state-level levies and local taxes.
Car makers have been the main beneficiary of the new GST and the No.1 car maker Maruti Suzuki has dropped prices on key models by up to 3 percent, passing on the benefit to customers, though erstwhile hybrid models ceased to avail concessions and become costlier now. The next major player Tata Motos has reduced prices by up to 7 per cent.
On retail front, Big Bazaar chain of retail stores has announced discounts of 2 percent to 22 percent on groceries and household goods across the country while online fashion e-commerce retailer Myntra is providing huge discounts as taxes on garments change from July 1.
Social media and WhatsApp are abuzz with discounts and how customers have been given huge discounts. One such message read:”I bought a refrigerator worth Rs.28,000 for Rs.800 only,” bragging on the unverified discount offer.
Those who have taken coffee in Mavalli center on Saturday morning were surprised to see huge tax on coffee. The actual rate of coffee was Rs.32.20 and the central GST was Rs.2.90 and the State GST was another Rs.2.90, making it Rs.2.90, with a total bill of Rs.38 for coffee. Ironic but South India, which consumes mostly coffee was the worst hit from the GST, while tea is enjoying lesser taxation.
Mobile phones, which are not daily consumables, have been reaping with huge discounts as the GST came calling on July 1, 2017. Apple is among those which has offered Rs.900 to Rs.6,600 discount on iPhone, iPad, Apple Watch, and Mac laptops.
iPhones prices are down from Rs. 1,200 to Rs.6,600, while iPad models are given discounts from Rs.900 to Rs.3,900, with the 12-inch MacBook and MacBook Pro models witnessing price drop of about Rs.5,100 to Rs.11,800.