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Mumbai: With the government planning major reforms in the Goods and Services Tax (GST), many online shoppers are waiting before making big-ticket purchases. Analysts say buyers are expecting lower taxes on products like air conditioners, washing machines, refrigerators, and smartphones once the new GST rates are introduced.
Currently, GST has four slabs—5 percent, 12 percent, 18 percent, and 28 percent. The Centre’s proposed GST 2.0 reform aims to simplify this structure into two slabs—5 percent and 18 percent. Durable goods, including consumer appliances, are expected to become cheaper under the new system.
The GST Council will discuss these changes in its upcoming meeting on September 3 and 4.
Temporary Dip in Sales
E-commerce experts note that categories like electronics and appliances are seeing slower demand because buyers are adopting a 'wait-and-watch' approach. For example, a smartphone currently priced at Rs 1.2 lakh could become around 105 percent cheaper after the reform, encouraging buyers to delay their decisions.
Retailers, in turn, are managing higher-than-usual inventories. Internal estimates suggest a 25-30 percent drop in sales for premium products if clarity on GST is delayed further.
Festive Season to Drive Recovery
Despite the slowdown, analysts believe the impact will be short-lived. Festive shopping remains a cultural and emotional tradition in India, with families planning purchases around festivals like Diwali.
E-commerce platforms like Flipkart and other online marketplaces are preparing for a surge in demand once the revised GST structure is finalised. Experts project a 15-20 percent rise in festive sales, particularly in electronics and quick-commerce platforms.
Saahil Goel, MD & CEO of Shiprocket, said GST rationalisation would boost affordability and encourage more confident purchases during festivals. Similarly, Flipkart’s Rajneesh Kumar called the reform a 'structural boost' that will energise festive demand and support India’s consumption growth story.
