Will Next-Gen GST add sparkle to Diwali sales? Bizmen hopeful
LUCKNOW, Oct. 9 -- With major goods and services tax (GST) reforms effective since September 22, businessmen are highly optimistic for increased footfall and stronger Diwali sales. The new tax structure, which simplifies rates and lowers them on many common products, has already boosted consumer sentiment in the automobile, electronics and precious metals sectors during Navratri, leading to a surge in early festive sales.
Federation of Automobiles Association (FADA) executive member Vinkesh Gulati said the market has recorded good pre-booking numbers ahead of the festival. "Due to GST 2.0, this Navratri has been promising for the auto industry. Compared to last year, sales during the nine-day festival have grown by nearly 20% (four-wheelers and two-wheelers in the city). Last year, 24,232 two-wheelers and 13,816 four-wheelers were sold in Lucknow...we are expecting sales of 30,000 two-wheelers and 16,500 four-wheelers this festive season," he said.
"There's huge potential with markets already witnessing increased footfall ahead of the festive season," said Sanjay Gupta, president, UP Adarsh Vyapar Mandal.
The utensils market business is also expected to soar from Rs 80 crore last year to Rs 100 crore this year. A boom in this market is expected, especially on Dhanteras," said Harishchandra Agrawal, president, Lucknow Metal Merchants Association.
Similarly, there were at least 50% more pre-bookings for electronics and electrical appliances than last year. "We are expecting the figures to go up by 20-30% on an average. Lucknow saw a market of over Rs 14.5 crore last Diwali, which is expected to swell by at least Rs 4-5 crore," said Anirudh Nigam, an electronics businessman associated with UP Adarsh Vyapar Mandal.
The readymade garment market also recorded major changes after the next-gen GST. "Last year, the city bought garments worth Rs 650 crore from both organised and unorganised sectors, which we expect to rise up to Rs 800 crore this year. People buying clothes under Rs 2500 will be benefited with a reduced GST rate while others purchasing over Rs 2500 will have to bear increased tax rates," shared Mohammad Afzal, state treasurer, UP Adarsh Vyapar Mandal.
However, Lucknow Vyapar Mandal president Amarnath Mishra said: "Besides the GST reform, there is a need for the government to equalise the online and offline markets, making it a level playing field for both businessmen."
The Chowk Sarafa Market has also begun receiving good pre-bookings, especially when prices of precious metals are increasing. "From investors to those involved in festive and wedding shopping, all customers are adding life to the markets. The footfall has made us anticipate a better festive season," said Adesh Jain, office-bearer, Chowk Sarafa Association....
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