High GST could increase smuggling of watches, says Titan

By

Maverick Martins

Published
Jul 5, 2017

Titan has said that the GST era will be beneficial for business across all product categories. However, ​the Tata Group-owned feels that a high GST rate on watches could lead to smuggling. 

In its quarterly report Titan said that GST will be beneficial to organised players like them and the company has already made a successful transition to GST with software changes and back end integration to be fully compliant with the GST regime.
 
However, Titan one of India’s top luxury goods firm, is wary of the 28% tax on watches and feels it could lead to smuggling.

"At 28 per cent, India has one of the highest tax rates for watches in the world, consequently increasing the risk of smuggling of watches into the country," Titan Company Ltd said in its report.
 
Titan is upbeat about its jewellery business after it witnessed a 50 per cent jump in sales during Akshaya Tritiya (a Hindu festival) in the first quarter of this fiscal. The company said that the 3 per cent GST imposed on the jewellery segment would not create any disruption in sales or gold exchange.
 
Titan also said that the conversion of its Gold Plus stores to Tanishq is underway and nine stores have been already been rebranded, across the country. Titan decided earlier this year to consolidate its jewellery portfolio by merging its Gold Plus brand with larger brand Tanishq. Gold Plus currently has 30 stores in the country
 
The company also added two Tanishq stores, 11 Titan Eye Plus stores and 17 stores in its watches division in FY 2017-18 so far.