80% online sale after GST rates announced

80% online sale after GST rates announced

As small-time traders stitch together the probable impact that the Goods and Services Tax (GST) could bring to their respective businesses, a coterie of sellers dealing with fashion and lifestyle products are putting up the remainder of their stock online at absurdly low price points.

Apparels and furniture are being offered for sale on e-commerce platforms Flipkart and Amazon India at discounts of up to 80 per cent. While men’s apparel under brands like Tommy Hilfiger, Lee and Arrow are up for grabs at a 70 per cent cut, prime members on Amazon are getting a minimum of 50 per cent off of on clothing and accessories from UCB and Indigo Nation.

As per the rates announced by the GST Council for the textiles industry, customers can expect a surge in the prices of garments of over Rs 1,000. While ready-made clothing below the mark will also be taxed at 5%, those above that price range will be slapped with a 12% tax rate.

And these online deals are not just restricted to fashion, but products from categories like home furnishings and interior design are also flying off the shelves.

Shoppers can sit tight and avail off minimum 60per cent discounts on a range of items on Amazon including coffee tables, bean bags and wall shelves. Sellers are also offering premium products like recliners and sofa beds at 30% and 40% reduction on MRPs, respectively. Flipkart is also giving an extra 20per cent off on furnitures from Hometown including modular closets and shoe cabinets.

This follows the Council’s announcement of tax rate on wooden furniture under the proposed structure. The rate of plywood, which is mainly used in the manufacture of most of wooden furniture articles, will go up from the current average VAT rate of 5-6per cent to 28per cent under GST. This is bound to bring up the cost of wooden furniture after July.

–¬†Apparel and Textile News, Apparel Talk, Indian Apparel