Just a few days before the new taxation system - Goods and Service Tax (GST) is launched in India, consumers seem to be having a field day. Or should I say days? Manufacturers and retailers are offering discount rates which are just increasing by the day, and consumers seem to be lapping up the products.
Maruti Suzuki, Hyundai, Honda, Mahindra and Ford have all brought out discount schemes to attract customers to buy their cars before the GST scheme comes into effect on July 1.
Retailers and dealers want to have the least possible stock at the end of June because the remaining stock will move to the GST regime and there would then be a sizeable difference in margins. No dealer can clear the entire stock in a few days time, but every one of them is definitely trying to do so.
Honda and Hyundai have employed similar schemes in which customers who purchase their cars in June would be given price protection. Under this scheme, the customer will purchase the car at a pre-GST price now, and if there are any differences in price post-GST, it would be refunded to the customer.
Manufacturers like Mahindra and Maruti Suzuki are offering cash discounts on a few of their cars. According to the GST bill, a standard peak rate of 28 percent has been implemented across all passenger vehicles. Also, the council has imposed a cess of one per cent on small petrol cars less than 1,200cc, three per cent cess on small diesel cars less than 1,500cc and 15 per cent cess on larger SUVs and luxury vehicles.
It isn't just the car manufacturers that are offering discounts. Huge discounts and clearance sales are being put up by manufacturers of clothes, electrical appliances and well, almost everything that is made in India.
The discount fest is going to last a few more days for us Indians, and it is a good decision to purchase products now.