The festive season in India is just around the corner, bringing with it the much-anticipated mega sales across e-commerce platforms like Myntra, Amazon, Flipkart, and more. As consumers eagerly await discounts on a wide variety of products, there’s another big change this year that could make these sales even sweeter: the upcoming Goods and Services Tax (GST) reforms.
The new tax structure will bring a reduction in prices on various consumer goods, making this year’s sales an even better opportunity for shoppers.
In this blog, we’ll take a closer look at how GST reforms will affect product prices and why you should be ready for the upcoming sales!
Understanding GST 2.0 and Its Impact on Prices
GST 2.0 is a significant reform in India’s tax system that aims to streamline the Goods and Services Tax framework, making it simpler and more efficient for businesses and consumers alike. The primary change in GST 2.0 involves reducing the existing four-tier tax slabs (5%, 12%, 18%, and 28%) to just two, which are 5% and 18%.
What Does It Mean for Consumers?
For consumers, this is a win. The main shift comes in the form of lower prices on many everyday goods, thanks to the simplified tax structure.
For example, products that were previously taxed at 12% or 28% may now fall under the 5% or 18% tax bracket, meaning you’ll pay less when shopping for things like clothing, household items, and even electronics.
This is particularly beneficial during the festive sales, when many consumers are looking to make large purchases, whether for themselves or for gifts. With prices on key products being lowered, shoppers will have more purchasing power, making the upcoming sales a great time to buy.
0
Bad
Check your Credit Score for Free
Your credit score is updated monthly and gives you insight into your creditworthiness. Take control of your financial future today.
Effect of GST 2.0 on Major Categories
One of the biggest winners in the GST reform will be essential consumer goods. Items like processed foods, clothing, footwear, and household items have seen their tax rates slashed from 12% and 28% to a much lower 5%. This change is expected to bring significant relief to consumers, especially for those making purchases for the upcoming festivals.
With these price reductions, consumers will find it easier to purchase essentials that they would typically need in large quantities during festive times, like groceries, clothes, or home appliances. The simplification of tax rates also reduces confusion at checkout, making it a smoother and more affordable shopping experience for everyone.
Electronics and Durables: Big Savings on Gadgets
Electronics, which are among the most popular categories during festive sales, will also benefit from the GST 2.0 changes. Many electronic items, including home appliances like refrigerators, air conditioners, and washing machines, which previously fell under the 28% tax bracket, will now be taxed at 18%. While it’s not a drastic reduction, every little bit helps, especially for big-ticket items that consumers tend to splurge on during sales.
Fashion: Ethnic Wear and More
The fashion industry, especially ethnic wear, is set to benefit greatly from GST 2.0. With the new tax brackets, consumers will see reduced prices on clothing and accessories, particularly on ethnic wear, which is always in high demand during festivals like Diwali, Durga Puja, and Eid. For example, sarees, kurtas, dresses, and other traditional attire that were previously taxed at 12% or 28% will now fall under the 5% category, making them more affordable.
Shoppers will find it easier to buy festive clothes for themselves and their families, thanks to the reduced tax burden. Online platforms like Myntra and Amazon, where the Big Fashion Festival and other sales events happen, will likely feature even more attractive discounts on already reduced prices, making the shopping experience more rewarding for fashion lovers.
Personal Loan
Quick Approval in 24 Hours
💰 No processing fee for first 100 customers | ⚡ Digital KYC in 5 minutes
E-commerce Platforms in Leveraging GST 2.0
More Accessible Sales
E-commerce giants like Flipkart, Amazon, Myntra, and others are already gearing up for the festive season with early sales, which could coincide with the launch of the GST 2.0 changes. By passing on the benefits of reduced tax rates to consumers, these platforms will be able to offer even more attractive prices on popular items. For consumers, this means they’ll have access to both online sales and lower taxes, resulting in substantial savings.
Additionally, as more consumers turn to online shopping, e-commerce platforms are adapting their strategies to cater to a wider audience. With the lower tax rates, it’s expected that many will expand their offerings, making it easier for people across different income brackets to purchase products they desire.
Top Upcoming Sales from Major E-commerce Platforms
GST rate reductions combined with major sales events are a recipe for big savings. Here’s a look at the top sales from some of India’s biggest platforms.
| Platform | Major Sales Event | Expected Deals/Discounts |
| Amazon | Prime Day | Up to 75% off on electronics and apparel; up to 65% off on televisions; up to 44% off on smart home devices. |
| Great Freedom Festival | Offers on electronics, fashion, beauty, and home essentials. | |
| Flipkart | The Big Billion Days | The largest sale event with discounts of 50-90% off across various categories, including new product launches. Up to 85% off on mobile phones and up to 65% off on laptops and earbuds. |
| Dussehra Sale | An extra 10% off on festive clothing and deals on ethnic wear and home decor. | |
| Diwali Sale | Up to 50% off on kitchen appliances and deals on furniture and gadgets. | |
| Myntra | Big Fashion Festival | Sitewide discounts of up to 80% on festive wear, footwear, and accessories. |
| End-of-Reason Sale | Up to 80% off on all items, with major deals on winter wear and end-of-season collections. | |
| Diwali Sale | Up to 80% off on ethnic wear, jewelry, and beauty combos. | |
| Ajio | Big Bold Sale | Up to 90% off on over 2.3 million styles from more than 6,000 brands like Puma and Levi’s. |
| All-Stars Sale | Minimum 50% off on international brands like GAP and Superdry, plus extra discounts on beauty products. | |
| Mega Diwali Sale | Massive discounts of up to 80% on ethnic wear, western fashion, and footwear. | |
| Nykaa | Hot Pink Sale | Up to 60% off on a wide range of beauty and wellness products. |
| Pink Friday Sale | Discounts of up to 50% on international and Indian beauty brands. | |
| Freedom Sale | Up to 60% off on luxury skincare and cosmetics. |
0
Bad
Check your Credit Score for Free
Your credit score is updated monthly and gives you insight into your creditworthiness. Take control of your financial future today.
Improved Discounts and Better Deals
The reduction in GST will also allow these platforms to offer better deals across a variety of products. For instance, an item that was once priced at ₹1,000 with a 28% GST could now be sold at ₹950 with an 18% GST, resulting in direct savings for customers. For more expensive items, such as home appliances and electronics, consumers will notice a significant reduction in overall costs.
To give you a clearer picture of how the GST reforms will impact various product categories, here’s a breakdown of the expected price reductions across popular items. As these tax benefits are passed on by e-commerce platforms, shoppers can look forward to more affordable prices this festive season.
| Product/Category | GST Change | Expected Benefit/Deal |
| Two-wheelers & Small Cars | From 28% to 18% | A 10% tax reduction, could boost demand by 15-20% |
| AC & Televisions | From 28% to 18% | Retail prices could drop by 8-9% |
| Processed Foods & Daily Essentials | From 12% to 5% | Lower prices, easing household budgets |
| Cement | From 28% to 18% | Lower input costs for builders, which could lead to improved profit margins |
| Insurance Premiums | From 18% to 5% or nil | Reduced cost of premiums, but potential for higher premiums due to ITC loss |
Personal Loan
Quick Approval in 24 Hours
💰 No processing fee for first 100 customers | ⚡ Digital KYC in 5 minutes
GST 2.0 Impact on Festive Shopping Budget
GST 2.0 isn’t just about making essentials more affordable; it’s also aimed at bringing down the cost of premium products, especially for people looking to treat themselves or buy gifts during the festive season. Categories like automobiles, consumer electronics, and even furniture are expected to see price drops thanks to the shift in tax rates.
Impact on Small Businesses and Local Sellers
The GST 2.0 reforms will also provide a much-needed boost to small businesses and local sellers, particularly those offering unique or handcrafted products. Previously, many small retailers faced difficulties navigating the complexities of GST rates. With a simplified tax system, these businesses can now expect lower compliance costs and, potentially, lower product prices.
As we approach the festive season, this is a huge advantage for sellers of items like jewelry, home décor, and personalized gifts. Not only will they be able to pass on some of the savings to consumers, but the simpler structure will also make it easier for them to manage inventory and sales, ultimately improving their overall efficiency.
Better Affordability and Buying Power
For consumers, the big win is the increased affordability of products, thanks to the lower GST rates on a broad range of goods. Lower prices on daily necessities, clothing, and even luxury items mean that people will have more disposable income to spend on the things they love, whether it’s shopping for themselves or buying gifts for others.
Additionally, the lower taxes on electronics and household items will help consumers manage their budgets better. Since they won’t be paying as much on everyday essentials or big-ticket items like furniture, they’ll have more room in their budgets for fun purchases like festive clothing, tech gadgets, or entertainment.
Final Thought
As we prepare for the festive season, the changes brought about by GST 2.0 are set to transform the way we shop. With reduced taxes on everything from groceries to luxury items, consumers can expect more savings and a smoother shopping experience. Whether you’re shopping for gifts, upgrading your home, or treating yourself, the new tax system will make your money go further.
For e-commerce platforms, the simplified tax structure will allow for deeper discounts and better deals, ensuring that customers get the most value for their money. Small businesses and local sellers also stand to benefit from a more straightforward tax structure, which will help them pass on the savings to their customers.
Download the Buddy Loan app now!
Get the free Buddy Loan app on your phone
