Festival season e-commerce sales jump higher as GST cuts boost demand
- IBEF
- September 29, 2025
India’s festive e-commerce season has opened with record momentum, powered by recent Goods and Services Tax (GST) reforms that have lowered prices and fuelled a sharp rise in discretionary spending. Effective from September 22, 2025, the start of Navratri, GST cuts on high-demand categories such as large-screen televisions, mid-range fashion, and furniture have delivered direct price benefits to consumers. This policy shift has driven a 23-25% surge in festive demand across metropolitan and emerging markets, with shoppers moving beyond bargain-hunting to aspirational purchases. Market research firm Redseer noted that reducing GST on large TVs from 28% to 18% cut retail prices by 6-8%, boosting sales of premium models. Fashion priced below Rs. 2,500 (US$ 28.18) now draws just 5% GST, while furniture taxed at the same rate has transitioned from wish lists to shopping carts.
E-commerce platforms reported unprecedented traffic and sales in the first two days. Amazon saw over 380 million customer visits, with more than 70% from outside the top nine metros, and over 16,000 small and medium businesses tripling their sales. Flipkart recorded a 21% rise in user visits, while Snapdeal’s fashion category doubled sales YoY, and festive gifting soared nearly fivefold. Analysts highlight that GST-led price reductions have energised demand in premium electronics, fashion, and home categories, signalling strong consumer confidence and deeper market penetration beyond major cities.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
