It’s raining discounts to clear stock ahead of GST rollout

NEW DELHI: A number of brands and retailers are offering special discounts to consumers to ensure that their sellers’ stock is cleared before the Goods and Services Tax (GST) comes into play from next month.

These commercial entities want to offload their stocks to minimise complex legal formalities related to carrying over and claiming input credit under the new tax regime.

Paytm is holding a ‘Pre-GST Sale’, hosting over 6,000 retailers across 500 brands. Through this, consumers can get discounts and cashback on a range of product categories, such as TVs, laptops, mobile phones, air conditioners, refrigerators and DSLRs.

“This sale has come at an opportune time for offline retailers who are looking to offload their entire inventory before the new tax rates become effective,” Paytm said in an emailed response.

The landmark GST reform kicks in from July 1.

All e-commerce companies have been engaging with the merchants on their platforms to ensure a smooth transition to the new taxation system.

Several non-virtual retailers have also slashed prices to dispose of merchandise ahead of the new tax regime’s launch, advancing their end-of-season sales by a month.

Bajaj Auto, on the other hand, has announced a reduction in motorcycle prices by up to Rs 4,500 purportedly to “pass on the expected benefits of GST to customers”. There will be lower tax on motorcycles in most states from July 1, the company said in a statement.

Luxury automakers like Jaguar and Mercedes too have announced discounts.