KOLKATA: White goods makers such as LG, Samsung, Panasonic 6.63 %, Whirlpool, Godrej and IFB among others, have decided on a 7.8-9% price cut in small screen televisions, refrigerators, washing machines, vacuum cleaners, kitchen appliances and electric personal care gadgets to pass on the 10% reduction on GST rates on these products, bringing prices to almost two-year low, four industry executives said.
While companies such as LG, Samsung and Whirlpool have announced the price cuts to the trade, some were waiting till late Thursday evening since the government’s notification was not yet out till then. The price reduction is to be effective from Friday.
The government had last week dropped GST on an array of consumer electronic products from 28% to 18%, which made the total taxation amount even lower than what it was during the earlier VAT regime, when it was around 26.5%.
The country’s largest home appliances maker LG India’s business head (refrigerator) Vijay Babu said the company is going to pass on the full GST reduction benefit to consumers with effect from July 27. Other companies too are passing on the full benefit.
Samsung India senior VP (consumer electronics) Rajeev Bhutani said the company is extending the benefits of GST rate reduction that will fuel growth of consumer electronics. Industry executives said LG has dropped prices by 8-9%, while Samsung and Godrej will be reducing prices by more than 7.81% across all products which got a tax cut. Panasonic’s net price cut is between 7-8%.
The tax component is calculated on dealer price to arrive at the product’s maximum retail prices. While some brands have passed on the complete benefit of the tax cut keeping dealer prices intact, some have also reduced dealer price whereby the net price cut has been marginally more, an executive said.