Luxury goods consumers are making enquiries at retail stores about any change in prices under GST 2.0, said sales representatives of luxury brands and industry insiders. They however noted that while the goods and services tax (GST) rates on luxury items such as premium watches, apparel, and accessories have not been lowered, their sales could benefit indirectly from a likely surge in discretionary spending in other sectors.
Most industry insiders affirmed that luxury brands have not made any change in their pricing strategies after the government’s move to cut GST rates on a host of consumer goods ranging from air conditioners to biscuits with effect from Monday.
“Monday was a pretty good day for us with the Pitru Paksha ending on Sunday. Customers had been holding off on purchases and they started making the payments from Monday,” said Vijay KG, founder of Luxepolis, an online marketplace for certified pre-owned and discounted luxury goods. “I think more discretionary income should benefit the luxury sector indirectly. With more money in the hands of consumers, consumption should go up.”
He said US President Donald Trump’s move to levy 50% tariffs on Indian imports have also hit the company’s business with most of its shipments currently stuck. “The US is our number one export market for pre-loved luxury goods,” he said.
Akash Awana, a sales associate at a Rado store in Delhi NCR said since Monday morning, customers have been enquiring about the GST impact on watches.
“We have been getting queries and we are conveying to customers that there are no changes to the GST rate of 18% on luxury watches. We sense a feelgood factor among consumers and this should help boost interest and sales,” he said.
Sanskriti Gupta, spokesperson for luxury chocolate brand Läderach India said it has cut prices in line with the reduced taxes. “We are passing on the benefit to the consumers. This timely reduction not only makes Läderach more accessible but also comes at the perfect moment, the festive season. We are expecting a strong surge in demand…,” she added.
The GST rate of 18% for makeup and fragrances stays unchanged, said an executive working at a Chanel store. “Our prices stay the same. The new stock is coming at the same price. We have not been given an intimation on potential changes in pricing,” he said, asking not to be identified.
