Ahead of the festive season, the Centre’s latest decision on Goods and Services Tax (GST) is set to bring relief to consumers planning big-ticket purchases. With the GST Council abolishing the 12% and 28% slabs and retaining only 5% and 18%, prices of several consumer durables including air conditioners, televisions, refrigerators, washing machines, cars and bikes are expected to come down from September 22. (News18 Hindi)
Industry analysts believe this move will not only benefit middle-class households but also trigger record-breaking sales during Navratri and Diwali, particularly on e-commerce platforms such as Amazon and Flipkart, where large-scale festive discounts are already a norm. Until now, high-value items like ACs and televisions above 32 inches attracted 28% GST. With the new slab, they will fall under the 18% bracket, leading to a considerable price cut. Retailers are expected to roll out additional offers on top of the revised tax rates, increasing overall consumer savings. (News18 Gujarati/AI-Generated)
Take, for example, the Voltas 1.5 ton 5-star inverter split AC listed on Amazon at Rs 41,990. At the earlier 28% GST rate, the base price stood at Rs 32,805, with Rs 9,185 added as tax, bringing the total to Rs 41,990. Once the 18% GST rate takes effect, the tax component will drop to Rs 5,904, making the final price Rs 38,709. Buyers will therefore save Rs 3,281 on the same model from September 22. (News18 Gujarati/AI-Generated)
A 40-inch smart Android TV currently sells on Flipkart for Rs 35,990. At present, its base price works out to Rs 28,117, with Rs 7,872 added as GST at 28%. Under the revised 18% slab, the tax will reduce to Rs 5,061, cutting the final price to Rs 33,178. This translates into a direct saving of Rs 2,812 for buyers. (News18 Gujarati/AI-Generated)
The dual impact of lower GST and festive discounts is expected to drive a surge in consumer spending. Retailers are already preparing inventories in anticipation of heightened demand. Market experts predict that this year’s Navratri and Diwali sales could surpass all previous records, with both online and offline stores witnessing heavy footfall. The GST Council’s decision, seen as a major festive-season relief, is likely to reshape shopping trends across the country. For middle-class families, who typically plan their big purchases around this time, the timing could not have been more favourable. (News18 Gujarati/AI-Generated)
