GST causing discomfort, say durables companies
New Delhi, June 18: Consumer durables makers say the run up to GST implementation has caused ‘discomfort’ among their trade partners who are busy clearing old stock to avoid losses before the new indirect tax regime kicks in next month.
The manufacturers expect normalisation of operations to take at least 2-3 months after the GST implementation.
“GST has caused a sense of discomfort amongst the traders as they are worried over the cash flow that might occur during GST implementation therefore, consumer-centric offers are being introduced,” Panasonic India head — channel operations Ajay Seth told PTI.
Explaining the current situation in the industry value chain, Godrej Appliances business head and executive vice president Kamal Nandi said that if distributors were to carry carry forward stocks to the GST regime from VAT regime, they would lose around 3-4 per
cent margin. “Right now they are liquidating their stock. If they do not have any stock, they are purchasing it. They are not upstocking anything,” he added.
According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the situation could take up to three months to normalise after the implementation of GST.