National
White goods sector sees decline in growth, wants cut in GST rate
By Porisma P. Gogoi
New Delhi, Dec 6 (IANS) Amid speculation about a Goods and Services Tax (GST) rate cut on white goods, industry stakeholders said a move from 28 per cent to a lower tax slab is essential for the health of the consumer electronics sector that has seen “single-digit or almost flat” growth in the past four quarters.
Stakeholders are optimistic that lower tax will not only give a boost to sales and manufacturing but also lead to an upgradation of consumers’ choice of consumer appliances.
“We have been recommending that GST rates should go down from 28 per cent to 18 per cent, further brought down to may be 12 per cent for energy-efficient products,” said Kamal Nandi, Vice President of the Consumer Electronics and Appliances Manufacturers Association (CEAMA).
Nandi said incentives should be given to people to move into energy-efficient four-star or five-star-rated products category, which in turn will help the government to save energy.
“A move from 28 per cent to a lower tax slab will be a welcome move and we definitely look forward to this as early as possible. The industry desperately needs this correction in the GST slab,” he added.
Overall demand for consumer appliances will go up, which in turn will help the industry, asserted Nandi.
“The industry over the last four quarters is in a single-digit growth or almost flat, except for one month of June where we saw a huge spike in demand on pre-GST sales. Other than that, the industry is not growing,” Nandi told IANS.
The consumer durables market is split into two broad categories of consumer electronics (brown goods) and consumer appliances (white goods). In July, GST was introduced on consumer goods with a tax rate of 28 per cent.
Air conditioners (ACs), refrigerators, washing machines, sewing machines, electric fans and other domestic goods all fall under the white goods category.
According to an India Brand Equity Foundation report, the refrigerators segment makes up 31 per cent of the consumer appliances market, while the Indian ACs market size by volume accounted for sales of 10 million units in 2015.
“Currently the market size of washing machine is around five million units, which is expected to grow 10-12 per cent in FY18,” the report said.
An expert on indirect taxation from the Confederation of Indian Industry (CII), who did not want to be named, told IANS that GST as a whole had allowed seamless input tax credit and overall goods had become cheaper by 3-4 per cent in general. He said if rates come down from 28 per cent, the products would become even more affordable.
Ashish Gupta, Managing Partner, Vijay Sales, said with lower tax rates, consumers’ choice of electronic appliances will upgrade to bigger products.
“Eventually, if it (GST rate) is lowered, it will help in increasing numbers because goods will become more affordable. It will help to boost sales, numbers will definitely go up,” Gupta told IANS.
“Also, we will see more upgrades. For example, if a consumer is going for a 250 litre appliance, he will be able to go for a 300 litre one. So that is another benefit that we will see,” Gupta said.
(Porisma P. Gogoi can be contacted at [email protected])
–IANS
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Lucknow: Vishal Singh, a renowned social worker from Lucknow, also known as Foodman, has once again made India proud. He was honored by the Happy Hands Gloves Cooperative Limited Company in Korathai, Thailand, for his work with the Hunger Free World Mission.
The Hunger Free World Mission’s meeting was held in Korathai, Thailand, under Vishal Singh’s leadership. Representatives from several countries, including Mr. Raja Dwivedi (Managing Director of Happy Hands Gloves Limited), Thailand Coordinator Mr. Raja Mishra, and member Mr. Varun Singh, attended the event.
Under Vishal Singh’s leadership, the attendees took a pledge to work together toward creating a hunger-free world.
Speaking on the occasion, Vishal Singh explained that the main goal of the Hunger Free World Mission is social participation. He said the mission is not just about feeding people but also about meeting other basic needs of those who are struggling. The mission focuses on helping families of terminally ill patients in hospitals by providing food and shelter. It also works to fulfill essential needs like education, jobs, and care for the elderly.
For the last 16 years, the Vijay Sri Foundation has been providing free services, benefiting thousands of people. Vishal Singh highlighted that the mission aims to gain global recognition like other organizations such as WHO, WWF, and Red Cross, which work for social causes.
During this meeting, Vishal Singh was appointed as the Chairman of the Hunger Free World Mission by representatives from various countries. They also discussed holding regular meetings in different countries to push the mission forward.
Business tycoon Dr. Abhishek Verma has also supported this humanitarian mission, vowing to promote the idea of “Seva Parmo Dharma” (Service is the highest duty) worldwide. Vishal Singh praised him, stating that people like Dr .Abhishek Verma inspire others to work for the betterment of society.
Recently, Romania’s Ambassador, Mr . Daniela Sezonov Ţane, invited Vishal Singh to the Romanian Embassy in Delhi, where they discussed the mission in detail. Impressed by his humanitarian work, she honored Vishal Singh and invited him to Romania to take the mission forward .
Food man Vishal Singh has been serving the people of India for the past 16 years. Through the Vijay Sri Foundation, he provides free meals to cancer patients & their families ,shelter, and education for women & children along with running free old-age homes in Lucknow.
In addition to his humanitarian work, Vishal Singh also addresses issues like crime and corruption through his role as Chairman of Seva Path Media and Managing Director of Vijay Sri Foundation.
During the COVID-19 pandemic, Vishal Singh and his team worked tirelessly to provide food and help to the needy, including starving children, elderly citizens, and pregnant women. Despite contracting the virus himself, he continued to assist others after his recovery. He even created a life-saving oxygen regulator using household items, which was praised by doctors both in India and abroad.
In his address at the meeting, Vishal Singh spoke about his mission to create a hunger-free world. He pointed out that India’s large population, along with issues like unemployment and poverty, has caused the country to fall on the Hunger Index. He urged people to contribute just one handful of grains daily to help create a hunger-free world.
He concluded by saying that through social participation, we can empower the people around us, meet their basic needs, and work together to build a stronger, more prosperous, and developed society.
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