Festive sales lose steam amid GST buzz

Muted enquiries, report consumer durables retailers

- VIVEAT SUSAN PINTO

CONSUMER DURABLES FIRMS and retailers are seeing a lull in sales even as the festive season begins this week with Ganesh Chaturthi, followed by Onam next week. Buyer enquiries are down by at least 50-60% in markets such as Maharashtra, Goa, Karnataka and Kerala, according to conversations with retailers and companies. Most consumers are waiting for GST rates to be reduced before making purchases, they said.

The government has proposed cutting GST to 18% from 28% on air conditioners, flat-panel TVs above 32 inches and dishwashers. The anticipation of a GST rate cut, however, has prompted a slowdown in sales across categories — from ACs and TVs to washing machines, refrigerators, dishwashers and other kitchen appliances.