Items and companies are presently charged underneath a four-tier system with charges starting from 5 per cent to twenty-eight per cent.
GST reform, proposed by the Centre, says that the majority items might be charged at both 5 per cent or 18 per cent. Durables akin to washing machines, air conditioners and fridges might be among the many items charged decrease charges underneath the brand new GST regime.
The GST Council, chaired by Union Finance Minister and comprising ministers from all states and UTs, will meet on September 3 and 4 to debate the reform.
Because the trade prepares for the rollout of GST 2.0, the e-commerce sector is witnessing a noticeable shift in client behaviour, notably round high-value classes akin to electronics and home equipment, mentioned Naveen Malpani, Companion and Shopper & Retail Trade Chief, Grant Thornton Bharat.
“The anticipation of revised tax slabs shifting from the present four-tier construction to a simplified two-rate system of 5% and 18%, has led to a ‘wait-and-watch’ sentiment amongst consumers.
“Inner estimates counsel a possible 25-30 per cent impression on high-ticket segments like air conditioners and fridges if GST readability is delayed. This cautious method is pushed by client expectations of worth drops as soon as the brand new slabs are carried out, doubtless round Diwali 2025. As an illustration, a Rs 1.2 lakh smartphone may change into 10 per cent cheaper post-reform, prompting consumers to delay their choices,” he mentioned.
Shubham Nimkar, Analysis Analyst at Counterpoint Analysis, corroborated the wait-and-watch scenario.
“Retailers are managing elevated stock ranges, whereas classes akin to electronics and home equipment are seeing deferred demand. E-commerce majors are already participating with manufacturers to organize for a probable surge in demand through the latter phases of the festive season in October, as soon as the revised GST charges are formalized.
“The anticipated adjustments will even affect pricing methods, as platforms recalibrate product positioning to replicate the brand new tax construction. General, whereas the near-term impression is a brief dip in gross sales, the market is poised for a pointy rebound as soon as there’s readability on the brand new regime,” he mentioned.
E-commerce platforms, whose flagship gross sales within the festive season contribute a big quarter of their annual revenues, are conscious of the impression these potential tax adjustments may have on their gross sales methods.
Nevertheless, the trade believes that regardless of this fast warning, the inherent power of India’s festive procuring tradition is a robust counter-narrative.
Shiprocket MD and CEO Saahil Goel mentioned festive procuring in India is each cultural and emotional.
“Households plan purchases round festivals, whether or not it’s a new equipment, a gadget, or a house enchancment. This underlying demand stays intact, and if something, GST rationalisation will solely function an added incentive for customers to purchase extra confidently. The deduction in slabs is a plus, it improves affordability, broadens entry, and strengthens buying energy on the proper time of the 12 months,” he mentioned.
Rajneesh Kumar, Chief Company Affairs Officer at Flipkart Group, views GST rationalisation as a “structural reform that can give a powerful enhance to consumption, energise festive demand, and help India’s progress story”.
Regardless of the present lull, the outlook stays upbeat. Malpani tasks a 15-20 per cent surge in festive e-commerce gross sales as soon as the reforms are enacted, particularly in electronics and quick-commerce platforms.
This rebound, he defined, might be pushed by enhanced client confidence, simplified compliance, and elevated affordability.