Ahead of the Goods and Services Tax rollout next month, Bajaj Auto is the latest to offer heavy discounts to clear stocks. The auto major has announced a discount of up to Rs 4,500 on various models of motorcycles depending on the state it is purchased from.

The company said the reduced prices were offered “to pass on the expected benefits of GST to customers”, PTI reported. While currently, the total tax rate on two-wheelers comes down to 30%, under GST, it will attract about 28%.

Brands and retailers have been offering steep discounts for the past week to ensure clearance of stock before July 1. Under the indirect tax regime, the retailer will be eligible for 40% deemed credit on excise duty if a particular product attracts less than 18% GST and a deemed credit of 60% for products over 18% GST. The dealers are, as a result, eyeing to offload their stocks to minimise legal procedures during transition to new tax regime.

Sportswear brand Puma also offered an extra 10% off on the 40% discount at its stores, while clothing brands such as Flying Machine and Pepe Jeans are offering up to 50% off and running a “buy three get three” offer, The Economic Times reported.

Apart from dealers and retailers, e-commerce companies are also offering huge discounts on products. Paytm Mall had announced a three-day “pre-GST Clearance Sale” between June 13 and June 15 offering discounts and cashback on purchase of mobiles, laptops, TVs, air conditioners among other items. Meanwhile, Flipkart is running a fashion sale for nine days, from June 10 to June 18.

“Retailers want to liquidate their entire stock as they cannot bear the load of the remaining 40% central GST, which will not be credited to them on unsold inventory,” Pulkit Baid, director at Great Eastern, which is one of the largest white goods retailers in the eastern region of the country, had told The Economic Times.

In May, the GST Council had clubbed commodities under seven categories of taxes – zero per cent, 5%, 12%, 18%, 28%, a special category and a luxury items category. The new tax regime is scheduled to rollout on July 1.