GST rate rationalisation pushes festive e-commerce sales higher

Consumer behaviour this season reflects a bullish sentiment, fuelled by GST-enabled price reductions that have lowered costs in high-ticket categories such as electronics and pushed festive demand up 23-25 per cent across metropolitan and emerging markets.

- OUR CORRESPONDENT

‘The GST reforms, effective from September 22 — the first day of Navratri —reduced tax rates in several high-demand categories, including large-screen TVs, mid-range fashion and furniture, providing direct price benefits to consumers.

These changes have not only lowered retail prices but also encouraged shoppers to look beyond tactical discount-hunting towards more aspirational purchases, lifting participation from tier 2 and tier 3 cities and stimulating growth in discretionary spending.

According to market research firm Redseer, the reduction of GST on large TVs from 28 to 18 per cent led to a 6-8 per cent fall in retail prices, boosting demand for premium models. Fashion items priced below Rs 2,500 now attract just 5 per cent GST, encouraging mid-market apparel purchases, while furniture, now also taxed at 5 per cent, has shifted from wishlists to shopping carts.

“First 2 days sales surged by 23-25 per cent year-on-year, marking a four-to-fivefold jump in growth over last year’s muted start. The twin forces of GST 2.0 reforms and festive sentiment