Good News! Manufacturers passing on benefits of GST to customers

Good News! Manufacturers passing on benefits of GST to customersUpdated on : 03-07-2017 11:40 PM
Implementation of GST has brought good news in terms of price cut in many segments. People who have been waiting to buy smart phones or cars have a reason to cheers as major automobile makers has cut prices of vehicle in various segments.

Adding to this, home makers can also rejoice their daily utilities shopping as FMCG goods have witnessed price cut after the tax reforms.

GST, has replaced almost a dozen different indirect taxes spread over different states in the country. The effect of the new tax regime started to show from the very first day of its implementation.

Following the roll out of GST from July 1, Apple has reduced the prices of its products in India to pass on the benefits to customers. GST will see smartphones being taxed at 12 per cent as compared to an earlier range of 8-18 per cent depending on the states. After Apple, Taiwanese firm Asus has slashed prices of its Zenfone range of smartphones by up to Rs 3,000.

Passing on to customers the benefits under the new GST regime, automakers today announced price cuts ranging from Rs 350 in case of two-wheelers to Rs 3 lakh on Ford's SUV Endeavour.

Honda Cars India, Ford as well as two-wheeler makers TVS Motor Company, Honda Motorcycle & Scooter India and Suzuki Motorcycle -- all announced rate cuts. The company reduced price of its hatchback Brio by up to Rs 12,279. Its premium SUV CR-V has also seen a price drop of up to Rs 1.31 Lakh.

Passing on the entire benefit of GST rates on vehicles to its customers, Maruti Suzuki announced slashing down the ex- showroom price up to 3 per cent. Ford India has also reduced vehicle prices by up to 4.5 per cent with immediate effect.

In the two-wheeler segment, TVS Motor Company has reduced prices of its models by up to Rs 4,150.Honda Motorcycle and Scooter India (HMSI) said it has slashed prices of its products by up to Rs 5,500 depending on model and state. Market leader Hero MotoCorp has also cut prices by up to Rs 1,800 banking on the GST launch.

FMCG major HUL has reduced the prices of some of its detergents and soaps, extending the tax benefits the company have got under the GST regime to consumers. The company has slashed the price of its detergent soap Rin bar of 250 gm to Rs 15 from Rs 18 and increased weight (grammage) of its Surf Excel bar costing Rs 10 to 105 gm from 95 gm at the same price. Besides, it is also offering 33 per cent extra in Dove bathing bar.

Tax experts say that GST aims to reduce taxation over taxation and hence in the long term it is going to bring down the overall tax burden.

(SA - @03/07)

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