Sources from Chennai added thanks to the GST rate cut, consumer durables, which have been witnessing a slower growth for the past six quarters, are expected to return to double digit growth with the sentiments improving during the festival season. Recently the government reduced the GST rates of refrigerators, freezing equipment, washing machines, vacuum cleaners and television sets measuring less than 27 inches from 28% to 18%.
Meanwhile in smaller appliances, the rate cut is applicable to food grinders, mixers, juice extractors, storage water heaters, immersion heaters, hair dryers, hand dryers and electric smoothing irons. Kamal Nandi, business head and EVP, Godrej Appliances said “The rate cut is applicable for a few products. But this will build positive sentiment during the festival season and hence propel growth. Further, a normal monsoon and increased agricultural income would support growth”.
Nandi added “It is a very positive move for us as
our sales numbers in washing machines and televisions would pick up
substantially and they have been waiting for this to happen and finally government
has cut the rates from 28% to 18% and GST is an opportunity for us to spur
demand and hence we would are not looking at any further hike for the festival
season”. Moreover the government also had reduced the GST rate of paints from
28% to 18% and the paint too is a fast moving category during festival and
wedding season.
