The new GST rates came into effect from September 22.
In this festival and wedding season, tremendous shopping is being seen across the country. According to government data, the total business of the festival and wedding season is expected to reach more than ₹7 trillion (Rs 7 lakh crore) in the year 2025. It is considered to be one of the biggest spending seasons of India in recent years. The main reason for this is the recent reduction in GST (Goods and Services Tax) made by the government.
The government said that the timing of the changes in GST made just before the festival and wedding season proved to be very opportune. This has increased consumer confidence and a surge in purchases is being seen in every sector. Government steps have not only reduced costs but also given a new impetus to the festival economy. This has strengthened the local supply chain and increased the demand for Made-in-India products across the country.
A tremendous increase was recorded in digital payments. It increased from ₹1.18 trillion on 21 September to ₹11.31 trillion on 22 September. People started shopping rapidly to take advantage of GST savings. Delhi witnessed festive sales worth around ₹75,000 crore, while Ahmedabad saw sales of clothes priced below ₹2,500. GST decrease After this, an increase of about 10% was recorded in the demand for cotton fabric.
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Bumper sale in auto sector
The automobile industry described this year’s Navratri season as the best in the last 10 years. Maruti Suzuki doubles sales compared to last year, delivers 1,65,000 cars in just 8 days. Of these, 30,000 vehicles were sold on Ashtami day alone, which is the highest single-day figure in the company’s 35 years.
Mahindra & Mahindra’s SUV sales jumped 60%, led by the XUV700 and Scorpio N. Tata Motors also sold more than 50,000 vehicles. At the same time, Hyundai’s SUVs now account for 72% of the company’s total sales. The number of customers at showrooms of two-wheeler companies like Hero MotoCorp and Bajaj Auto also doubled compared to last year.
Record sales in consumer electronics
The impact of reduction in GST was clearly visible on the domestic electronics market as well. Sales of TV, refrigerator and washing machine increased by 4045%, especially premium products. Haier registered a massive growth of 85% and Diwali stocks of 85-inch and 100-inch TVs were almost exhausted.
Reliance Retail’s sales increased by 20-25%, in which large TVs and smartphones were in highest demand. Vijay Sales, LG and Godrej Appliances also registered double-digit growth. From Onam to Navratri, festive sales now account for 40-45% of India’s annual retail consumption.
E-commerce platforms become big winners
Online platforms also got big benefit from GST cut. Lakhs of people bought everything online including mobiles, TV, sarees, decor, beauty products and essential items. Amazon India recorded 2,760 million (₹276 crore) customer visits, of which 70% were from tier-2 and tier-3 cities. Same-day and next-day delivery in metro cities increased by 29%, while two-day delivery in smaller cities increased by 37%.