GST impact: Godrej to pass tax benefit, reduce price of locks
Kolkata: Godrej has decided to reduce the price of its locks as tax burden gets eased by five to seven per cent post goods and services tax (GST) implementation.
“With GST most of our locks will be levied at 18% tax. We have decided to pass on the benefit to the consumers by suitably revising its wholesale and retail prices across the country,” Godrej Locking Solutions and Systems vice-president and business head Shyam Motwani told PTI.
Prior to GST, the lock industry was levied tax at 22-25%. “GST is a landmark move towards one nation, one tax initiative. The locks category will now attract 18% GST. This is a positively beneficial move for the industry. We expect demand for branded locks to increase in the near future,” Motwani said.
“Godrej locking solutions has been securing Indian homes for 120 years now. With GST, we expect the demand for branded locks to increase and consumers will have access to improved security at affordable prices,” he said.
Godrej which commands 45% of the Rs1,900 crore organised lock industry is aiming at gaining more traction. Around 60% of the country’s lock industry has unorganized players. The total lock market is estimated at around Rs4,800 crore, he added.