AC and TV sales jump as new GST rates come into effect

New Delhi:Sales of air-conditioners and television sets increased sharply on Monday, the first day of the revised GST rates, as buyers sought lower prices at the start of the Navratra festival. Neighbourhood kirana stores also recorded a modest rise in sales of daily essentials and food items.

The new two-slab GST structure of 5% and 18% has replaced the previous four-rate system following the GST Council’s reforms designed to stimulate consumption across the country. Dealers in the home appliance segment reported that room-air conditioning (RAC), now taxed at 18% instead of 28%, saw nearly double the sales on the first day.

"Trends of primary regular sales are encouraging. Till 5 pm in the evening, our dealers have reported almost double sales, compared to any other Monday," Haier India President NS Satish told PTI. He added that purchases were expected after office hours on a weekday and noted that the company had begun pre-booking before the roll-out of revised GST rates.

Blue Star Managing Director B Thiagarajan said: "Going by the enquiries, I think the mood is upbeat. Rough estimate is that growth compared with September last year will be around 20%. E-commerce players' big sale begins today and the prices will be watched by many consumers before deciding to buy. Many dealers of ours have bought machines under 'Shub Aarambh- New Muhoort' sentiments today."

Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd (SPPL), a TV manufacturer with licences for global brands including Thomson, Kodak, and Blaupunkt, said sales rose by 30 to 35% on the first day of GST 2.0. "Sales of TV sets with 43 inch screen size and 55 inch, on which GST levy was reduced, have a growth of 30 to 35%," he said. SPPL sells its products through e-commerce platforms such as Flipkart.

Some shops selling daily essentials and food items reported confusion over revised MRPs, with customers reportedly arguing with shopkeepers over the reduced prices. Several companies are yet to compile first-day sales data and are expected to provide updates on Tuesday.

Until Monday, home appliance sales were largely postponed as consumers awaited the nationwide implementation of the new GST rates. Dealers and manufacturers expect strong double-digit sales growth during the festive period from Navratra to Diwali, which typically accounts for around one-third of annual sales across categories.

Prices of daily essentials and FMCG products have also fallen as companies revised MRPs to reflect GST reductions. Products affected include soap, shampoo, baby diapers, toothpaste, razors, and after-shave lotions.