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Ecomm giants face GST uncertainty ahead of festive sale
India’s top e-commerce platforms face uncertainty ahead of festive sales as potential GST revisions on big-ticket items may impact pricing, consumer demand, and logistics planning, prompting some to seek early government clarity.
Currently, GST operates across four slabs—5 percent, 12 percent, 18 percent, and 28 percent.
India’s top online retailers are facing an unusual dilemma just weeks ahead of the festive season, launch their flagship sales as scheduled or wait for clarity from the Goods and Services Tax (GST) Council, which meets on September 3–4. The key issue is a potential revision of the 28 percent GST slab on big-ticket items such as appliances and furniture, which could significantly impact pricing and consumer demand.
Currently, GST operates across four slabs, 5 percent, 12 percent, 18 percent, and 28 percent. The Centre has proposed a simplified two-rate system of 5 percent and 18 percent, which would lower taxes on high-value products and could alter the pricing dynamics of festive sales.
Platforms like Flipkart and Amazon, whose Big Billion Days and Great Indian Festival sales typically begin in mid-September and contribute nearly a quarter of annual revenue, are closely monitoring the developments. As per a report by Moneycontrol, some companies are actively engaging policymakers to seek early clarity, aiming to avoid disruptions in high-value categories.
Not all platforms are seeking early intervention. Some are taking a wait-and-watch approach, relying on festive discounts to offset potential tax impacts. The Central Board of Indirect Taxes and Customs (CBIC) has advised stakeholders to avoid speculation, noting that GST decisions are collectively made by the Council.
Analysts estimate that festive season sales in 2025 could rise 27 percent to Rs 1.2 lakh crore if GST clarity is provided on time. Without it, growth may slow to 5–7 percent.
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