GST cut: Dealers expect a rise in sales this festive season

COIMBATORE: Dealers expect a rise in sales of electronic items and automobiles this festive season, following the reduction of Goods and Services Tax (GST) on several categories.

A dealer at Chera Home Junction in Coimbatore said that television sales, which account for nearly 50% of electronic sales, are expected to see a major boost during Diwali. “The GST on premium televisions of 32 inches and above was reduced from 28% to 18%, leading to a price drop of at least Rs 6,000 to Rs 7,000. For example, a 55-inch TV that earlier cost Rs 52,000 is now priced at Rs 45,000,” the official said.


Similarly, the GST on air coolers was also brought down from 28% to 18%. While television sales are expected to pick up during Diwali, sales of air conditioners are projected to peak during summer, the dealer added.

On the automobile front, Asokan Muthuswamy, managing director of Ambal Auto, said it is too early to predict the overall sales trend, but the initial response from customers has been positive.

“Around 30% of the car market belongs to the entry-level segment. With GST on these vehicles reduced from 28% to 18%, the 10% cut translates into a considerable benefit for buyers. For instance, the on-road price of Maruti S-Presso dropped from Rs 7.21 lakh to Rs 5.70 lakh, a difference of Rs 1.51 lakh. Similarly, the Maruti Dzire came down from Rs 12.91 lakh to Rs 11.31 lakh, a reduction of Rs 1.60 lakh. This will certainly boost sales in the coming three months,” he said.

R Ponnusamy, managing director of Aroma Bakery, said though bakeries do not collect GST directly from customers, the reduction in GST on several grocery items will reflect in product prices. “Prices of items such as cakes, biscuits, and puffs will come down slightly and the changes will be implemented in two to three days. However, bread and buns will remain the same,” he said.

K Prabhakaran, general manager of Prassna Honda, Coimbatore, said GST reduction has also benefited two-wheeler buyers. “Prices of different scooter and motorcycle models have come down by Rs 7,000 to Rs 15,000. We inform customers about these benefits during inquiries and expect sales to improve during the festive season,” he said.