post news network
Bhubaneswar, August 8: The appliances retail sector in the state appears to be unaffected by the implementation of GST as pre-GST surge in sales has buffered against losses resulting from implementation of the new indirect tax regime.
Leading appliances retail chains in the state expect sales to stabilise over the next two months as GST-led reduction in prices of appliances kicks in. Great Eastern Appliances Chief Executive Officer Kanti Moy Dass added that festive season demand is bound to rekindle demand for appliances, along with the dip in their prices post GST.
“We hope to see downward revision of prices soon which will bring stability in sales and growth by end of this fiscal,” he said. Kailash Chandra Patra, the managing director of Patra Electronics, said the retail chain had seen “70 per cent de-growth in sales” following the implementation of GST. He said the “three to four per cent rise in prices” of appliances after implementation of GST led to de-growth.
Patra said revenues have dipped as retailers have had to part with 28 per cent tax on profits post GST compared with 14 per cent previously. “We are eyeing growth in the coming months chiefly because the festive season is round the corner and people will rush to buy new appliances. It will drive sales during this year,” Patra said.
He said there has hardly been any difference in the prices of appliances before and after the implementation of GST.
Shakti Behera, a buyer, too, is of the same opinion. “I bought a television as a present for my sister in February. The television is selling at the same discount price even today when GST has come into force,” he said.
