In the consumer durable space, we foresee the introduction of Goods and Services Tax (GST) creating an initial market confusion and thereafter being embraced. While there is some uncertainty on the GST tariffs for certain consumer durables, we believe that there will be marginal impact on pricing, hence, may not lead to accelerated demand until the festive season. Would there be a saving on account of GSTIJ The plan is to pass on the benefits to the consumers. This should raise business confidence and help growth of the industry. As an industry, it will be a collective effort to address any confusion amongst trade partners, retailers, distributors etc, so that everyone is slated to begin with a fresh perspective and welcome positive policy inclusions.
While people are optimistic about the GST, they were also hoping for a lower tax slab than 28 the per cent, which would have been hugely beneficial. Given that consumer durables are necessities, taxing them at par with luxury goods at 28 per cent, is unreasonable. As we iron out the challenges, we reiterate our commitment to India's progress and the faith the system is placing in building one road to prosperity. Only time will tell how it truly pans out.