ETtechEcommerce major Amazon India announced the dates of its flagship Great Indian Festival soon after the Goods and Services Tax Council cut rates on categories such as footwear and apparel (priced up to Rs 2,500), handbags, chocolates, namkeens, and appliances including televisions.
The month-long sale will begin on September 23, a day after the new GST rates are implemented. Analysts said the timing of the tax revision, just ahead of the festive season, is likely to drive demand.
“Ecommerce platforms are definitely going to spur sales through the emotion of lower price and lower cost in their festive marketing campaigns,” said Amar Choudhary, chief executive of market research firm 1Lattice.
“The 10-percentage-point reduction in GST on appliances will attract consumers to buy more televisions, refrigerators, air conditioners and more, which will drive overall sales,” he said.
Choudhary expects electronics and appliance sales to grow 50-60% year-on-year, and overall festive sales to rise up to 40%.
ET earlier reported that ecommerce marketplaces and online retailers are expected to ship a record Rs 1.2 lakh crore worth of goods this festive season, a 25% increase from 2024.
Datum Intelligence founder Satish Meena said sales could surpass earlier forecasts. “The GST rate cuts are aligned to our expectations, but platforms were worried about the timeline. Now with clarity on implementation, festive sales will begin after September 22, as most orders happen in the first week,” he said.
Both Amazon India and Flipkart have welcomed the GST reforms. Walmart-owned Flipkart is yet to announce dates for its annual Big Billion Days sale.
The festive season, which began with Ganesh Chaturthi last week, will run until Diwali in mid-October.
Brands expect better sales
Akash Sharma, cofounder of DSG Consumer Partners-backed snacking brand Farmley, said the reduction in GST from 12% to 5% will make snacks more accessible, enabling high-quality products to reach shelves at lower price points.
“Festive periods are always driven by value and variety, and the GST cut makes that proposition even stronger,” said Siddharth Dungarwal, founder of men’s clothing brand Snitch. “Lower effective prices will encourage customers to shop more freely, whether it’s for wedding wear, gifting, or everyday fashion.” The D2C brand expects 40-45% year-on-year growth this festive season.
Fitness products brand Boldfit is also eyeing 40% growth compared to business-as-usual. “For sporting goods and footwear this is a landmark moment. It makes sports far more accessible in our country,” founder Pallav Bihani told ET.
“Doing this just before the festive season, where buying sentiment is high, will result in a huge multiplier effect,” said Pradeep Krishnakumar, founder of fashion brand Zouk, who also expects cost benefits on raw materials.
“We anticipate significantly higher traction compared to last year, with the rate cuts serving as a strong growth catalyst," said Ganesh Sonawane, cofounder and chief executive at Frido, noting that the brand saw its gross merchandise value reaching 3.5 times of business-as-usual in July during the pre-festive sales.
The festive season is the biggest consumption window for India, accounting for 30-40% of annual sales in categories like apparel and electronics. This year it is especially critical for platforms and retailers, as sales have remained weak over the past few quarters, with summer sales also dampened by early monsoons and floods across several states.
GST 2.0 Explained
Full list of items with revised GST rates effective from NavratriGST 2.0: What gets cheaper and costlier from Sep 22GST Council approves highest tax rate of 40% on these goodsThe month-long sale will begin on September 23, a day after the new GST rates are implemented. Analysts said the timing of the tax revision, just ahead of the festive season, is likely to drive demand.
“Ecommerce platforms are definitely going to spur sales through the emotion of lower price and lower cost in their festive marketing campaigns,” said Amar Choudhary, chief executive of market research firm 1Lattice.
“The 10-percentage-point reduction in GST on appliances will attract consumers to buy more televisions, refrigerators, air conditioners and more, which will drive overall sales,” he said.
Choudhary expects electronics and appliance sales to grow 50-60% year-on-year, and overall festive sales to rise up to 40%.
ET earlier reported that ecommerce marketplaces and online retailers are expected to ship a record Rs 1.2 lakh crore worth of goods this festive season, a 25% increase from 2024.
Datum Intelligence founder Satish Meena said sales could surpass earlier forecasts. “The GST rate cuts are aligned to our expectations, but platforms were worried about the timeline. Now with clarity on implementation, festive sales will begin after September 22, as most orders happen in the first week,” he said.
Both Amazon India and Flipkart have welcomed the GST reforms. Walmart-owned Flipkart is yet to announce dates for its annual Big Billion Days sale.
The festive season, which began with Ganesh Chaturthi last week, will run until Diwali in mid-October.
Brands expect better sales
Akash Sharma, cofounder of DSG Consumer Partners-backed snacking brand Farmley, said the reduction in GST from 12% to 5% will make snacks more accessible, enabling high-quality products to reach shelves at lower price points.
“Festive periods are always driven by value and variety, and the GST cut makes that proposition even stronger,” said Siddharth Dungarwal, founder of men’s clothing brand Snitch. “Lower effective prices will encourage customers to shop more freely, whether it’s for wedding wear, gifting, or everyday fashion.” The D2C brand expects 40-45% year-on-year growth this festive season.
Fitness products brand Boldfit is also eyeing 40% growth compared to business-as-usual. “For sporting goods and footwear this is a landmark moment. It makes sports far more accessible in our country,” founder Pallav Bihani told ET.
“Doing this just before the festive season, where buying sentiment is high, will result in a huge multiplier effect,” said Pradeep Krishnakumar, founder of fashion brand Zouk, who also expects cost benefits on raw materials.
“We anticipate significantly higher traction compared to last year, with the rate cuts serving as a strong growth catalyst," said Ganesh Sonawane, cofounder and chief executive at Frido, noting that the brand saw its gross merchandise value reaching 3.5 times of business-as-usual in July during the pre-festive sales.
The festive season is the biggest consumption window for India, accounting for 30-40% of annual sales in categories like apparel and electronics. This year it is especially critical for platforms and retailers, as sales have remained weak over the past few quarters, with summer sales also dampened by early monsoons and floods across several states.
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