GST Again Plunges Into Cooler Industry

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.

Deependar Singh (Ex-Employee)

An engineering graduate who loves to read and write. I follow finance, sports, and start-up stories. I write about GST and newly emerging mobile technologies. I also enjoy reading about philosophy and meditate on ZEN thoughts.

Recent Posts

No GST Returns Will Be Accepted If Filed More Than 3 Years Past Their Due Date

An advisory has been released by the Goods and Services Tax Network (GSTN) which notifies…

14 hours ago

Delhi HC: Two Judgment Orders Against One SCN Cannot Be Accepted for the Same Period

It was cited by the Delhi HC that the two adjudication orders against one SCN…

16 hours ago

CBDT Allows Electronic Filing of Forms 3CEDA and 3C-O Via Notification No. 5/2024

The Central Board of Direct Taxes (CBDT) in an update for the taxpayers via the…

17 hours ago

October 2024 Records the 2nd Highest GST Collection, Driven by Domestic Sales

In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second…

19 hours ago

UP AAR: GST Will Be Levied on the Installation of Electricity Distribution Systems by DISCOMs

Goods and Services Tax (GST) is to get paid on the procurement of materials and…

2 days ago

Bombay HC Quashes Rejection Order for Voluntary GST Cancellation Due to Lack of Stated Reasons

The Bombay High Court carried that as the revocation orders for the registration cancellation on…

3 days ago