HYDERABAD: As the new Goods and Services Tax (GST) rates rolled out on Monday, the markets in Hyderabad city anticipated a surge in purchases from the residents.
However, there was a lukewarm response from consumers on the first day to the newly introduced tax rates and business in various showrooms and local kirana stores remained subdued.
Electronic appliances showroom owners across the city witnessed muted footfall, attributing the slow response to heavy rainfall that kept shoppers indoors and the beginning of the nine-day Navaratri festival. “People usually plan their purchases two or three days before the Dasara festival, as that is considered an auspicious time. Since today is just the beginning, buyers are waiting for the festive and exchange offers to peak,” said Murali, who runs an electronics store in Ameerpet.
He said that demand for large-screen television sets and air conditioners had already slowed earlier this month as customers postponed their decision to purchase in view of the tax cuts announced by the government. “Even after the rollout, we are seeing only routine enquiries. The real surge is yet to come,” he added.
Across Hyderabad, whether in sprawling showrooms or local kirana shops, the immediate response has been cautious rather than celebratory. Products that once fell under the 28 per cent GST slab, including large TVs, ACs, refrigerators, and washing machines, now attract only 18 per cent.
Essential consumer goods such as soaps, shampoos and toothpaste, have also become cheaper. Automobiles, particularly small cars and two-wheelers, are seeing a drop in prices.
The rate cuts have reduced the prices of several electronic appliances. Televisions and air-conditioners are now cheaper by Rs 2,000-Rs 5,000 depending on the brand. For example, a 43-inch LED TV that earlier sold at Rs 32,000 is now priced around Rs 29,500, while a mid-range split AC has fallen from Rs 38,000 to roughly Rs 34,500.
Shoppers, however, appear to be waiting for the right moment. “I came today just to check the prices. The cuts are attractive, but I will purchase closer to Dasara when exchange offers and cashback schemes are also available,” said S Anitha, a resident of Kukatpally.
Car dealers, meanwhile, reported a spike in enquiries. “Many prospective buyers had delayed their bookings expecting tax cuts. Now they are back to confirm prices, and customers can save between `40,000 and `80,000 on hatchbacks and sedans,” said a sales manager at a Somajiguda showroom.
At kirana stores in Begumpet, traders said small reductions in items such as ghee, paneer, packaged snacks, and soaps were received well but did not trigger bulk purchases. “People notice when a soap costs three rupees less, that doesn’t make them stockpile,” said a shopkeeper.
Despite the subdued first day, retailers remain optimistic. “We expect strong demand just before the festive rush. Customers are aware of the reduced prices, but they are timing their purchases carefully,” said Kishore, a sales manager at an electronics store in SR Nagar.