On Friday, consumer durables company Godrej Appliances, reduced the retail sale price of its wide range of white goods ranging from washing machines to chest freezers by 7-8%. The company assured that the full benefit of 10% reduction in GST will be passed on to consumers with immediate effect.
Earlier consumer durables such as washing machine, small screen TV units, fridge, microwave etc. were placed in the highest tax slab rate of 28%. But in the last week's GST Council meet, the rate has been brought down to 18%.
The company thus expects new reduced prices together with festive season offers, good monsoon and revision of 7th commission pay to boost sales of the firm by 12-15% in comparison to last year's sale during the festive period.
In a release, the company said, "Godrej Appliances will be passing on the full benefit of the 10 percent reduction in GST with immediate effect, providing an increased impetus to the upcoming festive sales. The reduction will be around 7-8 percent in absolute terms".
Also, with the GST rate cut, the company expects these appliances to become more affordable, resulting in higher penetration of such goods.
Godrej expects energy-efficient ACs to be considered for GST rate revision which is currently taxed at the highest GST rate of 28%.
Meanwhile, Samsung also reduced the prices of its washing machine, refrigerators, TV sets by as much as 8%.