Companies to cut prices of washing machines, fridges by 7-8% post GST cut
New Delhi: With the government slashing GST rates on select white goods by 10 per cent, consumer durable makers say they will pass on the benefit to consumers and cut prices of commonly used items by 7-8 per cent.
The GST Council had announced reduction in tax rates on items like small screen TVs, fridges and washing machines to 18 per cent, from 28 per cent. The new rate will take effect from Friday.
"With the revision of GST rate on refrigerators and washing machines, there will be a reduction of price to the tune of 7-8 per cent for the end consumer. Godrej will pass on the entire benefit of GST reduction to the consumers," Godrej Appliances Business Head and Executive Vice President Kamal Nandi said.
Nandi said the revision of GST rate from 28 per cent to 18 per cent will provide relief to the appliances industry.
"The revision will make refrigerators and washing machines more affordable which will accelerate the penetration of these appliances across India. This is turn will lead to a spur in demand which will lead to increase in production and hence have a positive impact on the GDP," he added.
Agreeing with Nandi, LG India Business Head Vijay Babu said, "As a market leader...LG confirms that it will pass on 100 per cent GST reduction benefit to the consumers with effect from July 27. The price reduction for washing machine, refrigerators and vacuum cleaners will be in the range of 7-8 per cent".
Manish Sharma, president and CEO, Panasonic India and South Asia and President, CEAMA said the tax (GST) cut will provide a new impetus for growth especially before the upcoming festive season.
"The goods to benefit the most will be washing machines and refrigerators, where we expect growth to pick up substantially. The reduced taxes in television sets of up to 26 inches will ensure increased penetration and affordability in smaller parts of the country. We plan to pass on the complete benefits translating to around 7-8 per cent," he added.
Last week, 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, hand dryers, food grinders and varnishes.