GST Cuts Drive Up E-Commerce Festive Sales by Up to 25%

The ongoing festive season has opened on a high note as consumer demand surges, buoyed by the recent GST reforms that came into effect on September 22, coinciding with the first day of Navratri. 

By easing tax rates in key product categories such as electronics, fashion, and furniture, the reforms have lowered retail prices and reshaped consumer behaviour, pushing overall demand up by nearly a quarter compared to last year.

GST Reforms Redefining Consumer Choices

Under GST 2.0, tax rates on high-demand categories were reduced, making big-ticket items far more accessible. Large-screen televisions, for instance, saw their tax rate drop from 28% to 18%, translating into a 6-8% dip in retail prices and a noticeable uptick in demand for premium models. 

Fashion products priced below ₹2,500 now attract just 5% GST, encouraging wider participation from mid-market consumers, while furniture, also moved to the 5% slab, has transitioned from aspirational to actual purchases. The effect has gone beyond discounts, with shoppers showing a stronger appetite for aspirational and premium buys. 

E-Commerce Platforms Riding the Wave

Major e-commerce players have reported record-breaking engagement this season. Amazon noted over 38 crore visits in the first two days of its sale, the highest ever for the platform, with more than 70% of traffic originating outside the top nine metros. Categories like smartphones, advanced washing machines, and QLED TVs were at the forefront of this surge. Small and medium businesses benefited as well, with over 16,000 sellers tripling sales compared to an average day.

As per the news reports, Saurabh Srivastava, Vice President of Amazon India, stated, “The #GSTBachatUtsav initiative has been incredibly well-received, with sellers passing on GST benefits worth crores in just 48 hours. We’re humbled to see strong growth for lakhs of sellers across the country.”

Flipkart also reported a 21% spike in visits in the first 48 hours, attributing the momentum to GST reforms, while categories like mobiles, refrigerators, and TVs posted a 26% year-on-year increase. Similarly, Snapdeal highlighted that fashion sales doubled, festive apparel grew nearly fivefold, and gifting segments like serveware surged by 350%.

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Conclusion

The festive season has clearly been reshaped by the GST 2.0 reforms, which have made premium and mid-market products more affordable while boosting confidence among consumers across India. With sales jumping across e-commerce platforms and broader participation from smaller cities, this year’s festive wave reflects both policy-driven momentum and strong consumer sentiment.

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