The locks category will now attract 18% GST and is seen to positively impact the industry
Godrej Locking Solutions & Systems has announced that it would be passing the benefit of GST to consumers by suitably revising its wholesale and retail prices across the country.
Shyam Motwani, executive vice president and business head of the company, said, “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. Godrej Locking Solutions & Systems will be passing the benefits to customers by suitably revising its wholesale and retail prices across the country.”
Motwani informed that in the revised tax rates following fitment of goods in various slabs, the rate for a major category of locks has come down to 18%. In a country where over 60% of the locking solutions market is unorganised, this move is expected to help branded lock manufacturers, as price has been one of the key factors influencing purchase decisions. This move from Godrej will especially be beneficial for customers in tier-2 and 3 markets.
According to Motwani, small towns are likely to account for 5-10% of Godrej sales in this fiscal, and the share can double by 2020. The locking solutions market in India is worth Rs 4,000 crore. Godrej Locks commands 45% cent share of the organised locks market.