MANSI BHAMBRI | Dehradun
Numerous traders of electronic appliances and automobiles in Dehradun have voiced concerns regarding the current lull in sales. They opined that the sales have dropped due to the recent announcement of forthcoming GST reforms, praised by the Prime Minister Narendra Modi, which are anticipated to enhance the quality of life for citizens and facilitate business operations, particularly for small-scale traders and businessmen.
A two-tier GST tax structure has been approved, comprising rates of five percent and 18 per cent, supposedly designed to benefit the general populace. The new GST structure is set to be implemented in India effective September 22.
In light of this, many shop owners have indicated that while the new GST reforms could benefit the public, they have also led customers to hold off on purchases. Many consumers are choosing to postpone buying products until after the implementation of the new tax structure to take advantage of the benefits it offers.
The general manager at an automobile showroom Akash Chaudhary has expressed concern over the lack of sales of four-wheelers at his showroom. He attributed this decline to two main reasons: the ongoing Shradh and the announcement of the GST reforms.
He said that many customers have postponed purchasing four-wheelers until September 22, the date the new GST reforms will take effect. Under the new structure, the GST on four-wheelers has decreased from 28 per cent to 18 per cent, resulting in a potential savings of 40,000 to 90,000 for customers. Because of this, consumers are delaying their purchases in favour of the lower tax rate.
He further emphasised that there is still no clarity regarding the new GST reforms. He said that dealers are currently purchasing new stock at the old GST rates and questioned how they can sell those items at the lower GST rates after implementation. He urged the government to provide clearer guidelines.
Similarly, another salesperson at an automobile shop, Surendra Joshi, has expressed concerns over the significant decrease or complete lack of sales for their products. The new GST reforms have altered the tax slabs in two main ways: for some vehicles, the GST has been reduced from 29 per cent to 18 per cent and for others, it has dropped from 45 per cent to 40 per cent. He said that since the new GST will be effective from September 22, customers are currently putting their purchases on hold, waiting for the benefits to take effect.
“Customers are visiting the shop, but only for inquiries instead of making purchases. Since the announcement of the new GST reforms, sales of electronic appliances, including LED TVs, have declined. The GST on these items has changed from 28 per cent to 18 per cent, which is why customers are postponing their purchases and deciding to buy after the new GST reforms is implemented,” stated another electronic appliances shop owner, Siddharth Hurla.
