India: discounts on home appliances before the GST


From 1 July 2017 the Goods and Services Tax (GST) will be applied on the Indian market, introducing many news for consumers and retailers also in the home appliances and consumer electronics sectors. GST is an indirect tax approved last year, that will take a reduction in the overall tax burden on goods. But if it will be a benefit for end customers it will not be the same for retailers, who expect heavy losses in early July, because the remaining 40 per cent of central GST will not be credited to them on unsold inventory. This is why many big retailers of White Goods and Electronics in India are trying to clear stocks, by offering significant discounts on refrigerators, air conditioners, washing machines, TV sets and other kind of household appliances.