GST rate cut draws shoppers to electronics stores, sales stir slowly

Consumer durable stores across the country witnessed a noticeable uptick in footfall on Monday as the goods and services tax (GST) on television sets, air-conditioners, and dishwashers dropped from 28 per cent to 18 per cent. But despite the buzz, retailers say the surge in walk-ins has not yet translated into significant sales.

- BS REPORTERS

In Kolkata, electronics stores were prepared well in advance for the revised rates, with fresh stickers placed alongside old ones to highlight the 10 per cent price cut. From morning, customers were walking in to enquire, and the optimism was evident.

Sales had fallen nearly 50 per cent between September 1 and 20 — the crucial pre-festival period in East India — because buyers were holding back for the GST cut, said Pulkit Baid, director of Great Eastern Retail. “But sales have picked up today and should improve over the next month in the run-up to Diwali.”

He admitted that the switch posed challenges: Managing the rush, processing orders, updating systems — everything needs to be recalibrated.

In West Bengal, the start of Durga Puja gave an extra push. Khushboo Khosla, sales & marketing director of Khosla Electronics, a lot of advance bookings took place on Sunday, as it was Mahalaya — an auspicious day in West Bengal. Billing began on Monday, with customers who had booked in advance making payments and collecting their products. “GST reduction just ahead of Durga Puja has given the market a significant boost,” she added.

Bengaluru told a similar story. At a Croma store, the manager sounded cautiously upbeat: “It’s too early to tell what impact GST and the festival season will have. Last year we did sales worth about ₹1.5 crore. We're optimistic that this year will be good.”

AC sales shall remain subdued, he noted, as "it's not the season", but television sets and soundbars are in demand.