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GST 2.0: Shopping has intensified in the festive season after the GST rate cuts. In emerging markets and metros, demand has seen an increase of 23 to 25 percent. Under the GST reform implemented from 22 September 2025, tax slabs on big screen TVs, furniture and medium range fashion products have been reduced. This led to a decrease in prices and consumers directly benefited.
major impact:
GST on big TV was reduced from 28% to 18%, declining prices by 6-8% and increased demand for premium model.
Fashion, priced below Rs 2,500, is now only 5% GST, which led to a boom in sales.
The demand for furniture also increased significantly.
According to Redseer’s report, the first two days sales have increased by 23-25% on an annual basis. The demand for GST 2.0 improvement and festive season together brought out the sales of premium smartphones and TV to a record level.
Effect on e-commerce:
The demand was so high that some apps were slow and crashed while giving orders. Amazon set a record of more than 38 crore customers in the first two days, out of which more than 70% of the customers were out of the top 9 metros. Flipkart also recorded 21% more users in the first 48 hours than last year.
Amazon India Vice President Saurabh Srivastava said that “GST Savings Utsav” received a great response and in just 48 hours, GST benefits worth crores of rupees were delivered to customers. Significantly, efforts to increase domestic demand and GST reform have been announced at a time when India’s economic speed remains above six percent.
On the other hand, the pressure on India is also increasing globally. The US has not only imposed a base tariff 25 percent but has also applied an additional 25 percent penalty tariff due to purchasing oil from Russia. This step has been taken by the Trump administration in an attempt to stop Ukraine War. In this way, on the one hand the government is promoting domestic consumption and festive purchases through GST reforms, on the other hand, India is facing American tariff on the international front.
