Mumbai: The festival of lights has arrived early for shoppers and traders across India, with the government announcing a major Goods and Services Tax (GST) reduction on nearly 90 items. The move, widely described as a “Diwali bumper,” is expected to boost festive shopping and bring much-needed relief to middle-class and lower middle-class households.
Several essential items of daily use have been exempted from GST, including basic food products, exercise books, stationery, and school supplies. Apparel priced below ₹2,500 will now attract only 5% GST, while footwear too has become more affordable with reduced tax rates.
Big-ticket purchases such as cars and televisions will also benefit from lower GST, likely fueling higher demand during the festive sales season.“This is truly a Diwali bumper-bonanza for traders and consumers alike. The festive season promises to be brighter, with shopping expected to receive a strong boost,” said Viren Shah, President of the Federation of Retail Traders Welfare Association (FRTWA).
However, not all categories have received relief. Bridal wear priced above ₹2,500 will now attract 18% GST, a move that has left traditional manufacturers and retailers disappointed.
Despite this, the overall tax relief is being seen as a positive step for both traders and buyers.“The reduction will help increase consumer demand, which in turn will drive production and employment. This Diwali will be far more vibrant compared to the last,” Shah added.
With tax cuts across multiple categories, the upcoming Diwali season is set to see stronger retail sales, enhanced consumer sentiment, and renewed festive spirit in markets across the country.
