GST rate cut: Godrej Appliances slashes prices by 7-8%

Consumer durables firm Godrej Appliances today said it has reduced the prices of its washing machines, refrigerators, microwave ovens and chest freezers by 7-8 per cent, passing the GST rate cut benefit to consumers.

These products were earlier placed under the 28 per cent tax slab, which was recently reduced to 18 per cent.

"Godrej Appliances will be passing on the full benefit of the 10 per cent reduction in GST with immediate effect, providing an increased impetus to the upcoming festive sales. The reduction will be around 7-8 per cent in absolute terms," the company said in a release.

It expects the new prices, coupled with festive consumer offers, good monsoon and revision of the seventh pay commission, to provide a major fillip to festive sales growth to the tune of 12-15 per cent over last year's festive season.

Godrej Appliances business head and executive vice-president Kamal Nandi said, "The revision (in GST) will make refrigerators, washing machines, microwave ovens and chest freezers more affordable, which will accelerate the penetration of these appliances."

However, he rued that air conditioners are amongst the 35 goods still left in the 28 per cent tax bracket, and said that he expects the energy efficient variants to be considered for reduction in GST rate.

"Going forward, we are hopeful of revision in the tax for air conditioners, boosting its penetration which is currently a mere 3.6 per cent," he said.

Meanwhile, another consumer durable major Samsung also today announced reduction in the prices of TVs, fridges and washing machines by nearly 8 per cent. 

Earlier, Samsung, which sells a range of products including TVs, fridges and washing machines, said today that it has reduced prices by nearly 8 per cent to pass on the cut in GST rates to consumers.

The reduced prices, on applicable products, are effective from today, the company said in a statement.

The South Korean maker expects that the decision will fuel demand in the upcoming festive season.

"We are happy to extend full benefits, i.e. (over) 7.81 per cent, of GST rate reduction to all our consumers," said Samsung India Senior Vice President, Consumer Electronics Rajeev Bhutani.

The company said it is fully compliant with government's decision and will pass on the full benefits to the consumers.

"We believe it will fuel the demand for consumer electronics products now and in the ensuing festival season," he added.

Last week, the GST Council brought down tax rates to 18 per cent from 28 per cent on 15 items, including vacuum cleaners, washing machine, 68 cm (27 inch) TV, fridge, laundry machines, paints, hand dryers, food grinders and varnishes.