Hyderabad: Retail electronics outlets fear a drop in sales during the upcoming Ganesh Chaturthi and Dasara festival seasons, with customers awaiting the rationalisation of GST rates. They expect demand to bounce back stronger for Diwali, when the new GST rates kick in, making a range of goods cheaper.Market analysts view the proposed reduction as a positive move, likely to attract more buyers, but finance experts caution that it could reduce state governments’ revenue shares. Many states, including Telangana, are already facing a financial crunch. Vikas Kumar Jain of an electronics store explained: “The festival market may slow down, as people will wait for a straight 10 per cent GST cut, which means saving ₹10,000 on a TV priced at ₹1 lakh. But if the cut is implemented by Diwali, we expect sales to bounce back and cover earlier losses.” He added, “Currently, I have stock worth ₹3 crore in air-conditioners, on which I’ve already paid 18 per cent GST. While adjustments will eventually balance out, I will still face investment losses in the meantime.” Hyderabad’s retail market largely depends on three major festivals, Ganesh Chaturthi, Dasara, and Diwali. Retailers say that low sales during two of these festivals would be difficult to absorb. The market is highly competitive, with dealers selling products at margins of just 5 to 8 per cent. Some retailers pointed out that consumer behaviour had shifted due to easy installment schemes. “If customers like a product, they don’t mind paying a few thousand more, it’s just one extra EMI for them,” a retailer explained. Senior Chartered Accountant Sunil Parmar cautioned, “It’s too early to predict the market. Companies may introduce offers to push buyers, but the GST Council has the final say.”
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