Biz gets GST push as govt engages public

Price cuts tempt buyers; PM, ministers take GST gains to people

- Gireesh Chandra Prasad, Rituraj Baruah & Ayaan Kartik

Businesses reported a deluge of sales and enquiries on Monday, as buyers rushed to snap up products and services that turned cheaper at the dawn of GST 2.0. Makers of automobiles to home appliances noted the increase in demand as the festival season gets into full swing, with the nine-day Navratri festival starting on Monday.

Maruti Suzuki India Ltd, India's largest carmaker, said customer response to price cuts has been phenomenal, something the company has not seen in the last 35 years.

"On the very first day, we recorded 80,000 enquiries, and have already delivered over 25,000 cars, with deliveries expected to touch 30,000 shortly. Since 18 September, when we announced additional price reduction (over and above GST), we have received 75,000 bookings, with nearly 15,000 bookings coming in every day-about 50% higher than usual," said Partho Banerjee, senior executive officer (marketing and sales). Demand for small cars has jumped 50%, and enquiries remain "very high,", Banerjee said, adding Maruti Suzuki may even run out of stock for certain variants. "Dealers are staying open late into the night to deliver cars to customers. Compared to last year, the overall response has been exceptionally strong," he said.

Sales of air-conditioners and TV sets surged as buyers flocked to cheaper deals offered by retailers, PTI reported. Home appliances earlier taxed at 28% are now taxed at 18%. "Trends of primary regular sales are encouraging. Till 5 pm in the evening, our dealers have reported almost double sales, compared to any other Monday," Haier India president N.S. Satish told PTI. Blue Star managing director B. Thiagarajan termed the mood "upbeat", citing enquiries. "Rough estimate is that growth compared with September last year will be around 20%. E-commerce players' big sale begins today and the prices will be watched by many consumers before deciding to buy," he told PTI.