Latest news with #BThiagarajan
News18
12 hours ago
- Automotive
- News18
Buying A TV Or AC? GST Cut Could Save You Up To Rs 10,000 This Diwali
Experts say the Diwali GST cut could trigger the biggest drop in consumer prices in years, boosting sales and benefiting buyers whose incomes lag rising costs In a festive boost for consumers, the government is slated to slash GST rates on several daily-use items, a move expected to lower prices ahead of Diwali. The revised rates, likely to be rolled out before the festival, are aimed at easing household expenses and bringing much-needed relief to the common man. The government may also reduce the GST from 28% to 18% on TV sets larger than 32 inches, air conditioners (ACs), and dishwashers. This reduction could result in TV prices dropping by up to Rs 10,000, which home appliance manufacturing companies anticipate will boost sales during the festive period. Industry experts believe that this reduction in GST ahead of a major festival like Diwali will stimulate substantial festive sales. They suggest that this GST cut could result in the most significant decline in consumer prices in years, especially benefiting buyers whose incomes have not kept pace with rising prices, thus revitalising a stagnant market. AC Prices May Drop By Rs 2,500 The proposed GST reduction on ACs from the current 28% to 18% could lower their prices by approximately Rs 1500 to Rs 2500, depending on the model. According to a PTI report, Blue Star Managing Director B Thiagarajan has praised this move and urged the government to implement it swiftly. He mentioned that the price impact could be around 10% since GST is applied to the final price. Panasonic Life Solutions India Chairman Manish Sharma noted that if GST on ACs and other appliances is reduced from 28% to 18%, their market prices could decrease by 6-7% as GST is typically calculated on the base price. Sharma added that the price reduction for ACs would range from Rs 1500 to Rs 2500, varying by model. Godrej Appliances stated that the proposed tax slab reduction would significantly boost consumption and appliance demand. Cars Will Also Become Cheaper Cars will also become cheaper as entry-level hatchbacks, small sedans, and mini-SUVs could be included in the 18% GST tax slab. Currently, these vehicles face 28% GST and an additional 1-3% cess, bringing the total tax to 31%. Should the GST reduction take effect, vehicles such as the Maruti Suzuki Alto K10, Maruti Suzuki S-Presso, Renault Kwid, Maruti Suzuki Wagon, Maruti Suzuki Dzire, Hyundai Aura, Tata Tigor, Tata Punch, Hyundai Xstar, and Renault Kiger will see a decrease in prices. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Click here to add News18 as your preferred news source on Google. Also Download the News18 App to stay updated. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy. Loading comments...
Time of India
15 hours ago
- Automotive
- Time of India
Amid festivity, auto & electronics companies carry wait of GST on their shoulders
Manufacturers of passenger vehicles , television sets and other consumer products are worried consumers may hold off purchases over the next two months in wait for the proposed GST cuts to be put in place. Company executives said this could badly dent demand during peak sale periods such as Ganesh Chaturthi, Onam and Durga Puja festivals this year. The proposed reductions are expected to take effect only by October, at the time of Diwali. The GST Council is slated to meet in the third week of September to finalise new rates, based on recommendations by the group of ministers on rate rationalisation. The government said its aim is to reduce GST on daily use and aspirational products to enhance affordability, and drive consumption by moving towards two tax slabs from the current four. The plan is to facilitate this by scrapping the 28 per cent and 12 per cent slabs and shifting products in these two categories to either the 5 per cent or 18 per cent rate. There will also be a 40 per cent rate for luxury and sin products such as tobacco. The GST Council is the apex decision-making body for the eight-year-old indirect tax. GST 2.0 will be the first major overhaul of the levy. Consumers are most likely to wait for the new rate implementation, unless they have a pressing need, said B Thiagarajan, managing director at air-conditioner maker Blue Star . 'While the GST reduction is a welcome move to spur demand, there is a transition time for the new rate implementation,' he said, noting that dealers are now reluctant to add stocks. 'Ideally, if the new rates would have been implemented from September 1, the early festive period sales would have been extremely good. But now consumers will wait,' said Thiagarajan. A senior executive at an automaker said that while the industry is not cognisant of the final tax incidence, there is intense speculation, which may force deferment of purchases. 'It will impact footfall at dealers… Several customers who were actively enquiring have postponed their decisions, expecting a rate cut,' he said, requesting anonymity. The levy reduction is a boon amid sluggish car and consumer electronics sales . Consumers have been cutting back on discretionary spending with steps such as income tax rate cut and good monsoons failing to trigger a consumption spurt so far. Passenger vehicle sales growth has turned negative from May. According to government officials, small cars up to 4 metres length with up to 1200cc engine capacities are likely to be placed in the 18 per cent bracket, compared to the current 28%, and 1-3 per cent compensation cess. Larger vehicles are likely to be taxed at a special rate of 40%, instead of 43-50 per cent currently. Even two-wheelers are likely to come down to 18%, from 28 per cent plus a cess for some models now. Only taxes on electric vehicles are likely to remain at the current 5%. Among electronic appliances, products such as ACs, television sets of more than 32-inch screen size, and dishwashers attract 28 per cent GST. Here too, industry experts expect a drop to 18%. Products such as refrigerators, up to 32-inch TVs and washing machines are already in this slab. Sales will get impacted during the interim period of revised GST rate implementation, said Satish NS, president at Haier India . He is, however, hopeful of a pent-up demand surge during Diwali, by when the new rates should be rolled out. 'The benefits of tax reduction can be passed on to consumers without any lag as soon as they are notified,' he said. Haier India has started reviewing its business plans for large-screen TVs, expecting a spike in sales. A senior auto industry executive said on condition of anonymity that while the rate cut is a welcome measure, the timing is a challenge. 'The market is already slow. The government has indicated that the new levies will come into force around Diwali,' the executive said. 'Our fear is that customers across segments will defer purchases. Sales are likely to get disrupted for the next two months.' The festive season, India's biggest consumption period, is falling earlier this year. It usually starts with Ganesh Chaturthi in Maharashtra, which is in August this year, followed by Onam, Navratri-Durga Puja—which are all in September, peaking with Diwali in October. This entire period contributes 25-35 per cent of annual sales. Online-focused TV manufacturer Super Plastronics is expecting sales to decline over the next month compared to 4 per cent and 12 per cent growth in the last two months, said Avneet Singh Marwah, its chief executive. The company is licensed to sell brands such as Kodak, Thomson and Blaupunkt.
Economic Times
18 hours ago
- Automotive
- Economic Times
Amid festivity, auto & electronics companies carry wait of GST on their shoulders
Manufacturers of passenger vehicles, television sets and other consumer products are worried consumers may hold off purchases over the next two months in wait for the proposed GST cuts to be put in executives said this could badly dent demand during peak sale periods such as Ganesh Chaturthi, Onam and Durga Puja festivals this year. The proposed reductions are expected to take effect only by October, at the time of Diwali. The GST Council is slated to meet in the third week of September to finalise new rates, based on recommendations by the group of ministers on rate government said its aim is to reduce GST on daily use and aspirational products to enhance affordability, and drive consumption by moving towards two tax slabs from the current plan is to facilitate this by scrapping the 28% and 12% slabs and shifting products in these two categories to either the 5% or 18% rate. There will also be a 40% rate for luxury and sin products such as tobacco. The GST Council is the apex decision-making body for the eight-year-old indirect tax. GST 2.0 will be the first major overhaul of the levy. Consumers are most likely to wait for the new rate implementation, unless they have a pressing need, said B Thiagarajan, managing director at air-conditioner maker Blue Star. 'While the GST reduction is a welcome move to spur demand, there is a transition time for the new rate implementation,' he said, noting that dealers are now reluctant to add stocks. 'Ideally, if the new rates would have been implemented from September 1, the early festive period sales would have been extremely good. But now consumers will wait,' said Thiagarajan.A senior executive at an automaker said that while the industry is not cognisant of the final tax incidence, there is intense speculation, which may force deferment of purchases. 'It will impact footfall at dealers… Several customers who were actively enquiring have postponed their decisions, expecting a rate cut,' he said, requesting anonymity. The levy reduction is a boon amid sluggish car and consumer electronics sales. Consumers have been cutting back on discretionary spending with steps such as income tax rate cut and good monsoons failing to trigger a consumption spurt so far. Passenger vehicle sales growth has turned negative from May. According to government officials, small cars up to 4 metres length with up to 1200cc engine capacities are likely to be placed in the 18% bracket, compared to the current 28%, and 1-3% compensation vehicles are likely to be taxed at a special rate of 40%, instead of 43-50% currently. Even two-wheelers are likely to come down to 18%, from 28% plus a cess for some models now. Only taxes on electric vehicles are likely to remain at the current 5%.Among electronic appliances, products such as ACs, television sets of more than 32-inch screen size, and dishwashers attract 28% GST. Here too, industry experts expect a drop to 18%. Products such as refrigerators, up to 32-inch TVs and washing machines are already in this slab. Sales will get impacted during the interim period of revised GST rate implementation, said Satish NS, president at Haier India. He is, however, hopeful of a pent-up demand surge during Diwali, by when the new rates should be rolled out. 'The benefits of tax reduction can be passed on to consumers without any lag as soon as they are notified,' he said. Haier India has started reviewing its business plans for large-screen TVs, expecting a spike in sales. A senior auto industry executive said on condition of anonymity that while the rate cut is a welcome measure, the timing is a challenge. 'The market is already slow. The government has indicated that the new levies will come into force around Diwali,' the executive said. 'Our fear is that customers across segments will defer purchases. Sales are likely to get disrupted for the next two months.' The festive season, India's biggest consumption period, is falling earlier this year. It usually starts with Ganesh Chaturthi in Maharashtra, which is in August this year, followed by Onam, Navratri-Durga Puja—which are all in September, peaking with Diwali in October. This entire period contributes 25-35% of annual sales. Online-focused TV manufacturer Super Plastronics is expecting sales to decline over the next month compared to 4% and 12% growth in the last two months, said Avneet Singh Marwah, its chief executive. The company is licensed to sell brands such as Kodak, Thomson and Blaupunkt.
Time of India
19 hours ago
- Automotive
- Time of India
Amid festivity, auto & electronics companies carry wait of GST on their shoulders
Manufacturers of passenger vehicles , television sets and other consumer products are worried consumers may hold off purchases over the next two months in wait for the proposed GST cuts to be put in place. Company executives said this could badly dent demand during peak sale periods such as Ganesh Chaturthi, Onam and Durga Puja festivals this year. The proposed reductions are expected to take effect only by October, at the time of Diwali. The GST Council is slated to meet in the third week of September to finalise new rates, based on recommendations by the group of ministers on rate rationalisation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like A Tree Blocked This Garage for Years - See What's Inside! Tips and Tricks Undo The government said its aim is to reduce GST on daily use and aspirational products to enhance affordability, and drive consumption by moving towards two tax slabs from the current four. The plan is to facilitate this by scrapping the 28% and 12% slabs and shifting products in these two categories to either the 5% or 18% rate. There will also be a 40% rate for luxury and sin products such as tobacco. Live Events The GST Council is the apex decision-making body for the eight-year-old indirect tax. GST 2.0 will be the first major overhaul of the levy. Consumers are most likely to wait for the new rate implementation, unless they have a pressing need, said B Thiagarajan, managing director at air-conditioner maker Blue Star . 'While the GST reduction is a welcome move to spur demand, there is a transition time for the new rate implementation,' he said, noting that dealers are now reluctant to add stocks. 'Ideally, if the new rates would have been implemented from September 1, the early festive period sales would have been extremely good. But now consumers will wait,' said Thiagarajan. A senior executive at an automaker said that while the industry is not cognisant of the final tax incidence, there is intense speculation, which may force deferment of purchases. 'It will impact footfall at dealers… Several customers who were actively enquiring have postponed their decisions, expecting a rate cut,' he said, requesting anonymity. The levy reduction is a boon amid sluggish car and consumer electronics sales . Consumers have been cutting back on discretionary spending with steps such as income tax rate cut and good monsoons failing to trigger a consumption spurt so far. Passenger vehicle sales growth has turned negative from May. According to government officials, small cars up to 4 metres length with up to 1200cc engine capacities are likely to be placed in the 18% bracket, compared to the current 28%, and 1-3% compensation cess. Larger vehicles are likely to be taxed at a special rate of 40%, instead of 43-50% currently. Even two-wheelers are likely to come down to 18%, from 28% plus a cess for some models now. Only taxes on electric vehicles are likely to remain at the current 5%. Among electronic appliances, products such as ACs, television sets of more than 32-inch screen size, and dishwashers attract 28% GST. Here too, industry experts expect a drop to 18%. Products such as refrigerators, up to 32-inch TVs and washing machines are already in this slab. Sales will get impacted during the interim period of revised GST rate implementation, said Satish NS, president at Haier India. He is, however, hopeful of a pent-up demand surge during Diwali, by when the new rates should be rolled out. 'The benefits of tax reduction can be passed on to consumers without any lag as soon as they are notified,' he said. Haier India has started reviewing its business plans for large-screen TVs, expecting a spike in sales. A senior auto industry executive said on condition of anonymity that while the rate cut is a welcome measure, the timing is a challenge. 'The market is already slow. The government has indicated that the new levies will come into force around Diwali,' the executive said. 'Our fear is that customers across segments will defer purchases. Sales are likely to get disrupted for the next two months.' The festive season, India's biggest consumption period, is falling earlier this year. It usually starts with Ganesh Chaturthi in Maharashtra, which is in August this year, followed by Onam, Navratri-Durga Puja—which are all in September, peaking with Diwali in October. This entire period contributes 25-35% of annual sales. Online-focused TV manufacturer Super Plastronics is expecting sales to decline over the next month compared to 4% and 12% growth in the last two months, said Avneet Singh Marwah, its chief executive. The company is licensed to sell brands such as Kodak, Thomson and Blaupunkt.
Mint
a day ago
- Business
- Mint
ACs to get cheaper? Here's how much costs can reduce if GST reforms come into force
modeThe Finance Ministry on August 15 (India's 79th Independence Day), said that it has proposed reforms to the country's goods and services tax (GST) regime, with aim to simplify the process and rationalise rates. Later, on August 17, Prime Minister Narendra Modi added that the Centre has circulated the draft GST reforms among states and sought their cooperation to implement the proposal before Diwali. Electronic makers think so, they expect that the government will mark down electronics from the current 28 per cent GST bracket to the 18 per cent slab, thus allowing for reduction in costs by ₹ 1,500-2,500 depending on the AC models, PTI reported. The cost cuts take into account the proposed GST revisions and repo rate impact, it added. Apart from ACs, your televisions could also come cheaper, when applying the same principle of lower GST slab. At present, TV screens over 32 inches are taxed at 28 per cent — this could come down to 18 per cent. B Thiagarajan, MD of Blue Star feels the GST reforms are a 'great move', adding that the price benefit to the customer on the final pricing would be around 10 per cent, PTI reported. Manish Sharma, Chairman of Panasonic Life Solutions India said it would be 'phenomenal' if electronics and appliances are brought into the 18 per cent bracket, as 'there will be a straight 6 to 7 per cent odd price reduction in the market' that will 'result in reduction of ₹ 1,500 to ₹ 2,500', depending on the cost of the models. Among the sectors likely to see costs reduction due to the proposed GST reforms include everyday essentials such as groceries (food, fruits, vegetables), medicines, electronics (including ACs, TVs, fridges, washing machines), agricultural equipment, bicycles, insurance and education services. In groceries, items such as condensed milk, dried fruits, frozen vegetables, sausages, pasta, jams, namkeens including bhujiya, tooth powder, feeding bottles, carpets, umbrellas, bicycles, utensils, furniture, pencils, handbags made of jute or cotton, and footwear under ₹ 1,000 are currently taxed at 12 per cent GST, but will be brought under the 5 per cent umbrella, allowing for cost reductions. As of August 18, the effective GST rate slabs in India are 5 per cent, 12 per cent, 18 per cent, and 28 per cent, on most goods and services, except commodities such as gold and silver. The reforms propose new tax slabs of: 5 per cent (collapsing the 12 per cent slab into it), 18 per cent (collapsing the 28 percent slab into it), and 40 per cent for select 'sin' category goods such as tobacco and alcohol products. Notably, since GST is a consumption-oriented tax, PTI reported most experts agreeing that it is the final consumers who will ultimately benefit from these reforms, as lower GST means lower final cost.
