Mumbai, July 27, 2018: Prices of Godrej Appliances’ refrigerators, washing machines, microwave ovens and chest freezers will be reduced today, in response to the recent downward revision of GST rates on these appliances from 28 – 18%. Godrej Appliances, one of India’s leading players in the Home Appliances segment, will be passing on the full benefit of the 10% reduction in GST with immediate effect providing an increased impetus to the upcoming festive sales. The new prices, coupled with festive consumer offers, good monsoon and revision of the 7thpay commission, will provide a major fillip to festive sales growth to the tune of approximately 12-15%.
Mr. Kamal Nandi, Business Head and EVP – Godrej Appliances said, “We welcome the decision by the GST Council to reduce the tax rates on refrigerators, washing machines, microwave ovens and chest freezers to 18%. It comes as a great relief to the appliances industry in these sluggish times. With changing lifestyles, home appliances are increasingly seen as a necessity. The revision will make refrigerators, washing machines, microwave ovens and chest freezers more affordable which will accelerate the penetration of these appliances thereby raising the standard of living of people across India. This increase in demand will also spur production of appliances and positively impact the nation’s GDP.
We will be passing on the full benefit of this much awaited revision in GST rate to our customers. The prices of our refrigerators, washing machines, microwave ovens and chest freezers will be reduced by 10% GST reduction, providing a boost to sales ahead of the upcoming festive season, that help Godrej Appliances surpass our target of 20% growth over the previous year.”
Mr. Nandi further added, “it is unfortunate that air conditioners are amongst the 35 goods still left in the 28% bracket. If not all air conditioners, we expected that the energy efficient AC i.e. ACs with 4 star and 5 star energy rating, to be considered for reduction in GST rate, given that the Government and industry are jointly driving reduction in energy consumption under the BEE energy labelling program. Going forward, we are hopeful of revision in the tax for air conditioners, boosting its penetration which is currently a mere 3.6%.”