It is turning out to be bonanza time for consumers as companies, ranging from apparels to car manufacturers, woo them with attractive discounts ahead of implementation of the GST next month.
According to a PTI report: Apparel manufacturers are trying to liquidate old stock ahead of the new tax regime. Brands such as Levi’s, Reebok and Woodland are currently on a clearance mode offering high discounts.
“The retailers do not want to keep much of stock because the remaining stock will move to the GST regime and the margins would then vary. No brand can sell the entire stock before July 1 but they are trying to do the maximum,” MD, Woodland Worldwide, Harkirat Singh told PTI.
He said the GST has come just ahead of the usual seasonal discount and the brands have slightly advanced their offers.
Woodland is currently offering up to 40 per cent discount on maximum of its items. On select items the discount is even more.
An employee at an exclusive store of Levi’s here at the Capital said the company sent instructions to “clear old stock by offering these discounts as soon as possible because of the GST”.
Levi’s is offering buy-two get-two scheme on most of its items. Similarly, footwear majors Reebok and Bata are also offering up to 50 per cent discount.
The GST Council has decided to tax man-made apparel up to Rs 1,000 at 5 per cent, while those costing above Rs 1,000 will attract 12 per cent. At present the total tax incidence is around 8 per cent depending upon the states.
Industry analysts said the companies have been forced tocome up with the discounts as potential customers have held back on purchases expecting prices to come down after the implementation of GST.