It is anticipated that over the holiday season, sales of automobiles, motorcycles, gadgets, and clothing would rise by 15% to 20%.
Over 400 goods now have lower GST rates according to the GST Council. Two-wheelers, cars with air conditioners up to 1200 cc, and TVs bigger than 32 inches now only have 18% GST instead of 28%.
Holiday Sales GST Cut
Sales of automobiles, motorcycles, gadgets, clothing, and footwear are predicted to rise by 15–25% over this holiday season. The GST Council lowered the GST rates for over 400 products during its 56th meeting on September 3.
All two-wheelers, automobiles up to 1200cc, air conditioners, TVs above 32 inches, and several other home electronics now have a lower GST rate of 18% instead of 28%. The price of numerous commonplace things, such as hair oil, shampoo, and soap, as well as all kinds of clothing and footwear that cost less than Rs 2500 will now be 5% rather than 12%.
Sales may grow by 15% to 20% over the holiday season
The top two automakers in the domestic market, Maruti Suzuki and Hyundai, predict that sales over the holiday season this year would rise by 15–25% above those during the previous year. Customers have begun to reserve automobiles for purchase after September 22.
Price reduction of Rs 1.11 lakh for Dzire cars
Maruti Suzuki claims that from September 22, 10,000 automobiles are being reserved daily for purchase. Beginning on September 22, Navratri accounts for about 25% of all automobile and bike sales in North India from Navratri through December. Customers will save between Rs 7000 and Rs 8000 on motorcycles and over one lakh on vehicles thanks to the GST cut. Starting on September 22, the price of Maruti Suzuki’s Dzire automobile would drop by Rs 1.11 lakh.
TV sales to rise by 15%
TV manufacturers estimate that sales of large-screen TVs may rise by 15% during this Navratri. Businesses like Blue Star also think that sales of air conditioners might rise by 15% to 20%.
Customers would save money on air conditioners and dishwashers by having the GST rate reduced from 28% to 18%, according to Kamal Nandi, Business Head of Godrej Appliances. As a result, more individuals will buy from them.
It is anticipated that any losses brought on by slow sales will be made up over the holiday season.
According to Shiv Goyal, MD of Richlook, a firm that sells branded clothing, the slow sales are anticipated to be made up for over this holiday season. He said that he anticipates his sales to rise by as much as 15%, and it may possibly rise higher.
The majority of consumers will profit from lower GST on clothing under $2500, which will boost sales for all clothing vendors throughout the holiday season. According to Goyal, dealers would now operate in a fully fixed (with billing) manner rather than using Kachcha (cash) as a result of the rationalization of GST.