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India’s top e-commerce platforms face a festive-season dilemma: launch sales on schedule or wait for GST Council clarity.
Amazon (Image: Canva)
India’s largest e-commerce platforms are facing an unusual dilemma just weeks ahead of their blockbuster festive sales: stick to the schedule or wait for clarity from the Goods and Services Tax (GST) Council, which meets on September 3–4, Moneycontrol reported.
At stake is a potential revision in the 28 per cent GST slab on big-ticket items such as appliances and furniture — categories that could significantly shape consumer demand and festive spending.
Currently, GST operates across four slabs of 5, 12, 18, and 28 per cent. The Centre has proposed moving to a simpler two-rate structure of 5 and 18 per cent, which could sharply alter pricing on higher-value products.
Platforms like Amazon and Flipkart, whose flagship events, Great Indian Festival (GIF) and Big Billion Days (BBD), usually kick off in mid-September and contribute nearly a quarter of their annual revenues, are weighing the impact of possible tax changes on their sales strategies. To avoid disruptions during the critical season, some companies are lobbying the government for clarity before the Council’s meeting.
According to reports, at least one large e-commerce player has been actively engaging with policymakers. “They are requesting the government to expedite the GST implementation so that it doesn’t hamper their flagship sales starting mid-September. Otherwise, they expect a 25–30 per cent impact on categories such as ACs, refrigerators, and other appliances, where the 28 per cent GST slab is applicable,” one source told Moneycontrol.
Large appliances typically account for about 10 per cent of festive sale volumes, making them a crucial segment. The uncertainty is also weighing on customers, who are delaying purchases in anticipation of a potential GST cut. “Consumers are delaying their purchases as they expect a GST cut on big-ticket items during the festive sales,” said Satish Meena, founder of Datum Intelligence.
That hesitation comes even as demand has been recovering since March after a weak first quarter. Analysts now expect a sharp rebound once clarity emerges. Depending on how quickly decisions are implemented, platforms may even push their marquee sales back by a week, from mid to late September.
Not all companies are pressing for intervention, however. Insiders at another leading platform told Moneycontrol the firm is adopting a wait-and-watch approach. “After internal surveys, the conclusion was that the impact of higher GST on large appliances would be marginal and could be offset by steep festive discounts. On that basis, the company decided not to approach the government directly and will wait for the Council’s decision,” a source said.
Amid the speculation, the Central Board of Indirect Taxes and Customs (CBIC) has cautioned against jumping to conclusions. In a recent post on X, the regulator said GST decisions are taken collectively by the Council and warned that premature speculation could fuel rumours and market volatility.
The stakes are unusually high this year. Datum Intelligence projects festive season sales in 2025 could grow 27 percent to Rs 1.2 lakh crore — up from nearly Rs 1 lakh crore in 2024 and Rs 81,000 crore in 2023 — if GST clarity comes in time. Without it, growth could be muted to just 5–7 per cent.
Meena noted that platforms need weeks of advance planning for logistics, capacity and inventory. “If orders are delayed or tax rates don’t change, customers may shift to offline channels, which are likely to match e-commerce discounts. That will impact online sales,” he said.
For now, the country’s largest online retailers are drawing up parallel playbooks for different GST scenarios. Whether this year’s festive season delivers on its promise may depend less on discounts and more on how quickly policymakers move.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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