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2h ago

GST 2.0 Fuels Festive Spending Surge as Government Reviews Price Pass‑Through

Officials await end‑September field reports to verify that tax cuts are reaching consumers after a sharp pickup in early festive sales.

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NAVRATRI GST CUTS
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Overview

  • India’s simplified GST regime took effect on September 22 with two main rates of 5% and 18% plus a 40% slab for sin and luxury goods.
  • RedSeer estimates Rs 25,000 crore in e‑commerce GMV in the first two days of festive sales, up 23–25% year on year, while Amazon logged over 38 crore visits with most traffic from beyond the top nine metros.
  • RBI data show an exceptional spike in digital transactions to Rs 11.31 lakh crore on September 22 and Rs 11.19 lakh crore on September 23, including a jump in RTGS to Rs 8.14 lakh crore.
  • Rate cuts are translating into lower prices in key categories, with large TVs moved from 28% to 18% GST yielding an estimated 6–8% fall in retail prices and reduced rates on mid‑market fashion and furniture supporting demand.
  • Hindustan Unilever said it is passing on benefits through competitive pricing but expects near‑flat Q2 due to short‑term channel disruption, as the Finance Ministry projects the cuts will help ease inflation over the next year.