The Goods and Service Tax (GST) rollout from July 1 has ushered in a discounts spree for consumers buying electronic goods. The sales at big retail chains this month have even surpassed the numbers of last year's festive season.
According to a report in The Economic Times, durable sales this month have increased 85-90% from the year earlier as sellers are offering discounts of up to 45 per cent to clear inventory before the GST kicks in.
Sales at consumer electronic stores witnessed a sharp rise this month as buyers advanced their purchases anticipating increase in prices by up to 5 per cent from July due to higher tax rate under the GST.
"It has certainly been a huge month with sales growing 80-90 per cent over the same period last year, considering June is usually a month when consumer durable sales tend to dip," said Brian Bade, chief executive at Reliance Retail's digital formats told ET.
With a 28 per cent tax on most consumer durables under the GST, home appliances such as televisions, refrigerators, air conditioners and washing machines may get costlier from July 1.
Retailers have sold more air-conditioners and refrigerators in June, also considered a tepid month in terms of sales, than they did in May or April.
Vijay Sales managing director Nilesh Gupta told ET the retailer clocked sales on par with last year's Diwali and Dhanteras put together.
It's not just brick-and-mortar shops that are doing brisk business with pre-GST offers, online retailers like Amazon and Flipkart have also jumped in with massive discounts on electronic goods.