Revised GST rates come into effect across state
Jaipur, Sept. 23 -- The new Goods and Services Tax (GST) structure came into force across the country with the beginning of the festive season on Monday.
With revised slabs notified late on Sunday, traders in Rajasthan are expecting sales to almost double compared to last year, people aware of the matter said, adding that the reduced rates will also apply to existing stock, giving an immediate boost to markets.
The biggest impact is anticipated in automobiles and consumer electronics. Vehicle prices have dropped across categories-two-wheelers by 10%, small cars by 11%, large vehicles by 5-10%, and trucks by about 10%. "We expect double growth this festive season. The only challenge will be supplying enough stock, as existing showroom inventory may sell out in just four to five days," said Sai Girdhar, vice president of the Automobile Dealers Association.
A sales executive at Maruti showroom said the enquiries for the vehicles has almost doubled after the lowering GST. The company itself has reduced prices and now the GST has added to the demand.
Electronics retailers also see a windfall. Prices of 43-inch televisions have fallen by Rs.3,000-10,000, pushing pre-bookings sharply upward. "Normally, Rajasthan's festive electronics market is worth Rs.100 crore. This year it may reach Rs.200-250 crore," said SK Kalani, President of the Rajasthan Electronics Traders Association.
Industry leaders describe the revised GST as a strong economic stimulus. "With Navratri beginning, pre-bookings are pouring in. This cut has created a historic growth opportunity," said Arun Agarwal of FORTI.
Food products are also cheaper, with GST on processed foods, almonds, dates and desi ghee reduced from 12% to 5%. "It's a welcome step for both traders and consumers," said Babu Lal Gupta, President of the Rajasthan Food Traders Federation.
Meanwhile, Rajasthan government has launched a week-long public awareness campaign, 'GST Savings Utsav', from September 22 to 29 to educate consumers on the benefits of the central government's GST rate cuts. Chief minister Bhajanlal Sharma said the initiative aims to help farmers, traders, and the middle class, save more during the festive season and encourage businesses to leverage the simplified tax structure....
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