Ambiguity over new GST prices forces retailers to keep minimum stock: Report

In the wake of the historic tax reform, Goods and Services Tax (GST) , mobile retailers all over India seem confused and have switched to the immediate safety measure, which is to limit smartphone stocks in store. According to a report by The Economic Times , mobile stores have been left hanging for prices of the new stock that is yet to enter the mobile markets. So as a precautionary measure, have kept the number of stocks to a minimum to avoid losses once the dust settles.

The government has slated mobile phones at a tax slab of 12 percent. Additionally, it has added a ten percent basic custom duty on imported goods.

The report said that stores like Reliance Digital and Chroma saw a smooth transition, thanks to the teams that manage the invoicing and pricing. With smaller retailers, things get difficult. The smaller retailers are expecting a smoother transition within a week or ten days, as per the  report .

According to the PTI, the government seems to be inclined to give ‘Make In India’ a push. Thereby, it has put the basic custom duty at 10 percent for imported products and thus, encouraging local manufacturing units. However, in the wake of the rollout , Apple had slashed the prices of both iPhone and iPad. And, prices for ASUS are expected to be cut as well.

Despite a smoother transition to the new pricing system, there has been a five to ten percent decrease in footfall. The taxation system which was released on 1 July has created a ripple effect in various other sectors as well.

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