GST cuts spark festive rush as AC, TV sales double on day one

Consumers rushed to retail stores and e-commerce platforms on Monday as lower GST rates came into effect, sparking a sharp jump in sales of air-conditioners, televisions, and daily essentials at the start of the Navratra festival, PTI reported.

The GST Council’s sweeping tax reform, replacing four slabs with a simplified two-rate structure of 5% and 18%, triggered immediate price cuts across a wide basket of goods, from toiletries and packaged foods to high-ticket home appliances. The timing, coinciding with the nine-day Navratra festivities, added momentum to consumer demand, according to companies and trade insiders.

PTI reported, Air-conditioners, which moved from the 28% slab to 18%, were the biggest gainers. “Till 5 pm, our dealers reported almost double sales compared to any other Monday,” said N.S. Satish, President of Haier India, adding that pre-bookings had begun even before the new rates took effect. Blue Star MD B. Thiagarajan said enquiries were strong and projected growth of around 20% versus last September.

Television sales also spiked, particularly in popular 43-inch and 55-inch segments. Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd, said sales grew 30–35% on the first day, largely through Flipkart. “The sentiment is very upbeat, and e-commerce discounts are further accelerating the trend,” he noted.

Neighbourhood kirana shops, too, reported higher demand for daily essentials and packaged foods, though confusion lingered among consumers over revised MRPs. Several shoppers were seen negotiating prices, reflecting a lag in passing on GST benefits at the retail level. FMCG majors including Hindustan Unilever and ITC have begun revising price tags on soaps, shampoos, diapers, and other essentials.

Industry executives said the timing of GST 2.0 could amplify festive-season demand, with Navratra to Diwali typically accounting for nearly one-third of annual sales across categories. After weeks of subdued activity as buyers postponed purchases ahead of the new rates, retailers and brands are now expecting high double-digit growth through the season.

“The combination of festive sentiment and lower GST has created a perfect storm for consumption,” said one senior retail executive. “This could be the strongest sales run in recent years.”

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