New Delhi: Several brands and retailers are offering special discounts in order to clear their stock before the Goods and Services Tax (GST) come into play from next month.
These steps are being taken to minimize complex legal formalities related to carrying over and claiming input credit under the new tax regime.
Paytm is holding a ‘Pre-GST Sale’, hosting over 6,000 retailers across 500 brands. Through this, consumers can get discounts and cashback on a range of product categories, such as TVs, laptops, mobile phones, air conditioners, refrigerators, DSLRs and footwear.
“This sale has come at an opportune time for offline retailers who are looking to offload their entire inventory before the new tax rates become effective,” Paytm said in an emailed response.
Even online drug marketplace 1mg has taken the same step. “Due to GST, there may be a shortage of medicines in July. Stock [email protected] per cent off on 1mg.com to avoid issues,” read a statement.
The GST reform kicks in from July 1.
All e-commerce companies have been engaging with the merchants on their platforms to ensure a smooth transition to the new taxation system.
ShopClues – which has about five lakh merchants on its platform – said it is organising seller summits in various cities, sending regular updates to merchants through mails and updating GST-related information on its seller portal.
“Soon, we will organise weekly webinars, where merchants can get their doubts clarified from our internal GST experts,” it added.
Several non-virtual retailers have also slashed prices to dispose of merchandise ahead of the new tax regime’s launch, advancing their end-of-season sales by a month.
Sportswear brand Puma is offering an extra 10% off on the flat 40% discount while Allen Solly is presenting a buy-one-get-one free scheme to its customers. Levi’s is giving away two items free on the purchase of two, while Flying Machine is offering a discount of up to 50%.
Bajaj Auto has announced a reduction in motorcycle prices by up to Rs 4,500 purportedly to “pass on the expected benefits of GST to customers”. There will be lower tax on motorcycles in most states from July 1, the company said in a statement.
With Agency Inputs