The revised rate of GST was welcomed with festive cheers by the consumers; however premium value homegrown Consumer Electronics and Durables brand Mitashi Edutainment has a different perspective to the revised rate;
According to Rakesh Dugar, CMD, Mitashi Edutainment, “The first half was challenging because of policy changes, rupee depreciation, and commodity inflation, resulting in price hikes and an impact on demand. The GST reduction is definitely a step in the right direction however it is still half measures taken in the direction of the reduction and has little impact. The rates reduced are on Washing Machines and Refrigerators from 28 percent to 18 percent, but products like TV’s above 27 inch which constitute of almost 90 percent of the TV market and air conditioners market on the whole are not included in the revised GST rate list.
While the move to cut GST on small screens is welcome and will see TV makers pass on the benefits quickly in that segment, it would have helped if the GST on larger TV screens was also lowered, we say this as 45-50 percent of Mitashi’s business deals in the TV market which is growing on the back of large screens. Our 25 percent business comes from ACs which was skipped over completely. Washing machines and refrigerators categories total to another 20 percent, hence we say it is a positive but small step in right direction and government needs to widen scope to truly make an impact. The second half of the year should be better following the latest announcement and will improve demand with price cuts that appliance makers will take after the GST rate reduction.” – TV Veopar Journal Bureau