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GST impact : LG increases electronics prices

GST
Due to the introduction of major tax reform GST, electronic companies are increasing their prices as they are under 28% GST tax regime.

Before GST, various acclaimed stores were offering huge discounts on the electronics items. If you haven’t purchased at that time you are going to regret. As numerous manufacturing companies are planning to rise their prices in order to account for GST.

LG is the first company to hike television prices. In western region, there is hike in the range of 1.3% to 7%, while in the Delhi/NCR region prices have marginally gone up by under 2%. The price hike is different in different regions due to the variable transportation and logistics cost.

Panasonic have also announced the increase in the price of TVs and white goods such as refrigerators and microwave ovens . The company is working out and final prizes will be announced in a short span. Reportedly, the impact can be between 3-4% on the existing retail price.

On the other hand, Samsung have already increased the prices of its white goods by 1-2% before the announcement of GST. Hp too has taken price hikes on HP Notebook and HP Pavilion Notebook by around 2%.

Sony India has not yet planned to increase the price of panel TVs. Apart the company is studying the implications of the GST and in no mood to revise the prices of TVs as of now.

Lenovo is also looking into the GST rates and its impact on the cost. The evaluation is still on, but the company haven’t decided anything yet. But the company has announced that they may not increase the prices if there is not much impact.

Electronic companies are increasing prices as there products have come under the tax slab of 28% GST regime from July 1. Earlier the tax ranges from 24-28%.

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