The GST heatwave has hit local cooler makers and traders hard this summer. The reason for this is that GST has left little difference between the prices branded and unbranded coolers. Unlike previous years, the soaring sun has brought the little smile on their faces. Inability to stay competitive is a major concern for traders ahead of the long and tiring summer.
Troop Bazar is a famous wholesale electrical market in Hyderabad. Traders here are accustomed a large number of footfalls every year at the onset of the summer season. People flock the streets of Troop Bazaar every year at this time to buy their summer respites.
However, there is a sharp contrast this time around. The bazaar streets lack the vigour and zeal you would associate with a normal trading day. The empty shops await their ardent customers.
The traders even acknowledge the fact that there is no good reason for a common man to opt for their local wares. The zero price-gap has wiped all competitive advantage.
Post-GST, local traders have to compulsory pay their taxes. This was not the case a year ago. Most of the traders were not paying sales or VAT Tax. This has resulted in the non-branded medium-sized coolers have become costlier by Rs 500-1000. The consumer will have to bear the rise in price. And with no considerable difference remaining between branded and non-branded price tags. The consumer has a very easy choice to make before himself.
Read Also: What a Big Move! GST Converted Branded Products into Unbranded
GST has completely altered the playing field. Until last year, driven primarily by customer demand, even white goods shops were stocking up non-branded local market coolers. This is not the case this time around. Sales have dipped to 13 units/ day from 50 units/day at the same time around last year.
