Durables makers increase prices under new tax regime; tax goes up to 28%
Prime Minister Narendra Modi addresses the special ceremony in the Central Hall of Parliament for GST launch, in New Delhi, on Friday. Pic/PTI
People planning to purchase white goods will have to pay more now as most appliances and durables makers have increased their prices in the tax regime under GST.
Durables makers will also go in for another hike before the festive season as the industry is considering a price revision based on input credit when their existing stock of raw materials and components will need to be replenished.
"For our sector, the net tax would go up. The current tax is 25-27 per cent; it would go to 28. Therefore, the consumer price will go up if brand and dealers want to retain the same margin," said Godrej Appliances business head and executive vice president Kamal Nandi. Videocon COO CM Singh echoed his views.
"Once we get input credit from the freshly purchased raw material, two months down the line, then we would have prices at the same level as pre-GST days," Singh said.
Firms are getting their price list reviewed, and Monday onwards, dealers will start restocking based on GST prices.
However, Panasonic said it would take a decision in this regard only in the beginning of the week.
Shops down shutters in J&K
Srinagar: Most shops and other business establishments were shut across Kashmir on Saturday to protest against GST in the state. Traders and the opposition parties claim the new tax regime would lead to erosion of the special status of Jammu and Kashmir guaranteed by Article 370 of the Constitution.
Guj cloth markets stay shut
Ahmedabad: A majority of cloth shops in Gujarat remained shut, while those who stayed open said they didn't carry out any business. Cloth merchant associations in Gujarat as well as in a few other states had earlier called for a three-day protest across the country from June 27 to 29.
TN Finance Minister
'There is no need to worry as prices of essential commodities will not rise due to the implementation of GST'
Odisha Chief Minister
'The implementation should be smooth and take care of all doubts and concerns to benefit the common man, trade, commerce and industry'
Watch video: When Mamta's topless photo created controversy
Download the new mid-day android app to get updates on all the latest and trending stories on the go https://goo.gl/8Xlcvr