Increases of appliances prices under GST in India


The new GST tax regime has come in the Indian market on July 1st. Consumers and retailers knew that the new taxation would have changed the sector trend in the first period and household appliances retailers tried during the latest months to finish their stocks even applying 50% discounts on the previous prices.
The GST tax regime involves both household appliances and other durable goods causing an increase of their prices because the current tax rate is around 25-27% and would go to 28%.
Of course, industry and products manufacturers are considering a price revision based on input credit, when their existing stock of raw materials and components would replenish.
If brands and dealers want to retain the same margin home appliances products prices will go up.
Holiday season, however, is generally very strategic for this market, recording every year a relevant increase of sell-out, close to 30%. So the prices increases could start at the end of Summer, allowing consumers to understand the new situation. India is now an emerging country with a growing medium class that considers household appliances a necessity for a new lifestyle quality, so the sector players will have to make deep consideration about the market development.