DIWALI ALREADY seems to be here ahead of Goods and Services Tax (GST) that is coming into force from July 1. For, Chandigarh car dealers and electronic retail owners are literally showering benefits — in some cases even up to Rs 90,000 — to clear their stocks. The mega sales which are usually announced during Diwali have now been termed “pre-GST benefits”. Not just this, the representatives of sales departments have been luring customers by telling that post-GST, small cars will become expensive and this is the right time to book one. Cars of engine capacity up to 1,500 CC will attract 28 per cent tax under the GST.
A Volkswagen car dealer in Industrial Area Phase 1 told Chandigarh Newsline that cash discount of Rs 50,000 would be given on buying a Polo, Ameo or a Vento. “See, GST is here and you will suffer losses if you purchase the car after July 1. We have a special offer ahead of the new tax regime. Besides Rs 50,000 cash discount, we will offer free accessories as well. But you need to book it before June 20 since the next six days we have kept only for making deliveries,” said sales representative Shubham Rana.
Rana said that once a meeting was fixed, they could work on more cash discount. In order to attract more customers, a Hyundai car dealer, KLG Hyundai at Industrial Area Phase 1, is offering pre-GST benefits for different categories. They have posted it online as well. Under this sale, for government employees — retired and serving — there would be additional benefits of up to Rs 10,000 while there are other exclusive offers for corporates and doctors. On a Grand i-10, there would be benefits of up to Rs 73,000 for a diesel car while Rs 62,000 for a petrol car. On a Santa Fe car, there is a cash benefit of up to Rs 2.5 lakh.
The offer is valid up to June 29. Meanwhile, a dealer of Harmony Honda in Industrial Area Phase 1 is offering freebies like free insurance cover, foot mats and other accessories as well. Some of them, however, have fixed the booking date one week before July because they say that the manufacturing companies have stopped sending any further stock. “In fact, there are apprehensions that there can be losses after GST comes into force. So the companies have stopped manufacturing more cars because accordingly tax would have to be paid by them when these would be sold to retailers,” said a car dealer, requesting anonymity.
The electronic showrooms too are in the line of offering discounts on gadgets and LEDs. The electronic items will attract a tax of 28 per cent which earlier was varying from 23-26 per cent. At Pinky Electronics in Sector 22, Chandigarh, the representative said that a Videocon LED available for Rs 60,000 would be given for Rs 48,000. The Gadget Gateway Mall is offering scratch-and-win gifts for Rs 20,00,000 on every single purchase of Rs 2,500 to attract buyers.
Also, a cashback of Rs 3,000 on purchase of any mobile worth Rs 10,000 has been announced. There are special exchange offers for second-hand mobile sets too. Freebies are being offered on a daily basis. Anil Vohra, president, Chandigarh Beopar Mandal, said, “All the traders are concentrating on clearing their pending stock since the amount of tax on the number of goods is changing, making it expensive or cheaper for the shopkeeper.” Readymade garments Several cloth showrooms have announced discounts ahead of GST regime. GST on readymade garments above Rs 1,000 will be 12 per cent while on garments below Rs 1,000, it will be 5 per cent.
Meena Bazaar, a women’s wear store having branches all over the Tricity, is offering 20 per cent discount while Landmark Designer Studio is offering 25 per cent discount at their store.
(Inputs by Pragya Pasricha)