Companies offer pre-GST discounts to clear stock

It is turning out to be bonanza time for consumers as companies, ranging from apparels to car manufacturers, woo them with attractive discounts ahead of implementation of the GST next month.

While apparel manufacturers are trying to liquidate old stock ahead of the new tax regime, automobile companies are attempting to draw buyers to showrooms with attractive limited period discounts of up to Rs 2.5 lakh across a range of vehicles sold in the country.

Brands such as Levi’s, Reebok and Woodland are currently on a clearance mode offering high discounts.

Woodland is currently offering up to 40 per cent discount on maximum of its items.

Levi’s is offering buy-two get-two scheme on most of its items. Similarly, footwear majors Reebok and Bata are also offering up to 50 per cent discount.

The GST Council has decided to tax man-made apparel up to Rs 1,000 at 5 per cent, while those costing above Rs 1,000, will attract 12 per cent.

At present, the total tax incidence is around 8 per cent depending upon the states.

On the automobiles front, Maruti Suzuki, Hyundai, Honda, Nissan, Mahindra and Mahindra and Ford India have all come out with different schemes that are valid for June only.

Dealers of the country’s largest car-maker Maruti Suzuki are offering discounts between Rs 25,000 and Rs 35,000.

Similarly, M&M is offering benefits ranging between Rs 27,000 on Scorpio to Rs 90,000 on XUV500 till June 30.

Hyundai Motor India dealers are offering discounts ranging between Rs 25,000 on Elite i20 and all-new Xcent to Rs 2.5 lakh on premium SUV SantaFe.

Honda Cars India, on the other hand, is offering up to Rs 14,500 discount on its hatchback Brio, Rs 50,000 on compact sedan Amaze, Rs 17,000 on premium hatchback Jazz and Rs 60,000 on B-RV under a special scheme valid during June.

Japanese carmaker Nissan’s dealers are also offering benefits of up to Rs 80,000 on sports utility vehicle Terrano and around Rs 25,000 on small car Micra.

Industry analysts said the companies have been forced to come up with the discounts as potential customers have held back on purchases expecting prices to come down after the implementation of GST.

Under the GST rates, cars will attract the top rate of 28 per cent with a cess in the range of 1-15 per cent on top of it.

While small petrol cars with engine less than 1,200 cc will attract 1 per cent cess, that with a diesel engine of less than 1,500 cc will attract 3 per cent cess.

(Agencies)

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