GST effect: Companies offering price reductions
Posted on: 03/Jul/2017 5:02:31 PM
Following the implementation of GST, the Indian Stock Market has resumed afresh. It is expected the with the single uniform taxation system throughout the country, the taxation process from now would be smooth and simple.
Under the GST there are 4 tax slabs - 5%, 12%, 18% and 28%. Though the new system has brought out many changes in just 2 days, there is a surprise element – many leading companies have come forward with discounts for their products. The announcements on the discounted offers were announced by several companies. A brief on the various offers from different companies:
Automobiles:
Toyota, which lost 85% of sales in the month of June, has come up with a price reduction of up to 13%. Hero Motocorp has reduced the prices of their 2-wheelers from Rs. 400 to Rs. 4000.
It is expected that in the next few days, Hyundai, Tata Motors, and Ford will come up with their announcements after getting an idea about the approach of Maruti Suzuki.
Consumer market:
Hindustan Unilever, which leads to being the largest consumer trading market, has reduced the prices of several items. In cases where price could not be reduced, it has come up with the offer of an increase of weight for the old price.
Nestle has reduced the prices of Maggi, Ketchup, Cerelac and other milk items.
Godrej Managing Director Vivek Gambir has announced that the company may either reduce the price of its soap or increase its weight.
Further, Pepsi, Marico, Parle, and Bisleri have announced that there would be a reduction in the prices of their products after 1st July.
Electronic Goods:
It is gathered that the prices of TV, Fridge, air-conditioner, and washing machine will be up at least by 2.5%. The leading companies are busy preparing the new price list.
Example
42 inch TV price will be up from Rs. 40000 to Rs. 49000.
A 280-litre fridge price will be up from Rs. 25000 to Rs. 26500.
The prices of the air-conditioners, depending on the type, will be up from Rs. 26000 to Rs. 26500.
The average price rise of the electronic products will be up by 1.5% to 2 % over the prevailing prices.
Butter, cheese, and ghee:
Amul, while reducing the price of its cheese (cottage cheese) and the milk products for children, has increased the price of its ghee. There is no change in the prices of ordinary cheese, butter, and ice cream.
Other items:
The prices of Pickles, Jam, and ketchup have gone up after GST. The distributors of brand rice, wheat flour have informed that there are problems in the fixing of revised tax rates.
