Goods and Service Tax (GST) is going to be implemented, small time business traders are estimating the probable impact that GST could bring to them and their business. A group of businesses trading in fashion and lifestyle products are selling away their remainder of stocks at high discounts and extremely low price.
Discount on Attire & furniture
Attire and furnitures are being offered for sale on Flipkart and Amazon India at rebates of up to 80%. While men’s attire under brands such as Lee, Tommy Hilfiger and Arrow are available at a 70% rebate and Prime members on Amazon are getting a discount of at least 50% on dress and accessories of Indigo Nation and UCB.
According to the rates declared by the GST Council for textile industry, clients can expect a surge in the costs of artifacts like clothing of more than Rs 1,000. On other hand, 5% taxes on readymade garments are applied; those over that value range will be slapped with a 12% tax.
Discount on Home furniture and interior designing products
Furthermore, these online arrangements are not quite limited to fashion only, in fact items from classes like interior design and home furniture are additionally taken off the racks.
Shopers can avail minimum 60% discounts on wide sorts of products of Amazon including bean bags, Coffee table, wall shelves, etc. Merchants are also offering premium items like sofa beds and recliners at 30% – 40% discount on MRPs. Flipkart is also serving an additional 20% off on furniture from HomeTown including shoe cupboards and modular closets.
Rate of Furniture after GST
This action us taken after the Council’s declaration of tax rate on wooden furniture under the proposed structure. The rate of plywood will be increased by 28% from the older VAT rate of 5-6% under GST. This will undoubtedly raise the cost of wooden furniture after July.
Online summer sale after GST
This sale is unlike the summer festival sale of large e-commerce players where electronics, smartphones and large appliances sold big. This sale is backed by the sure rollout of GST which is being treated as a threat by small scale traders who fear that the change in tax structure would impact their overall margin of profit.