Are GST 2.0 reforms driving record sales across India?

Synopsis
Key Takeaways
- Significant price reductions on essential goods and services.
- Record-breaking sales in the automobile industry.
- Surge in online shopping during festive sales.
- Immediate consumer relief and spending boost.
- Positive economic impact across various sectors.
New Delhi, Sep 23 (NationPress) The rollout of GST 2.0 reforms on Monday received an overwhelming response from retailers, auto dealers, and families across India.
Coinciding perfectly with the start of Navratri, this revamped tax structure provided everyday consumers with a reason to celebrate, thanks to lower prices, simplified tax slabs, and immediate benefits on essential items.
Prime Minister Narendra Modi described GST 2.0 as "a reform for the people of India," and it indeed resonated as more than a mere policy shift—it felt like a festive celebration. Car dealerships reported long queues, online shopping carts were filled to capacity, and sales surged to unprecedented levels during the festive season.
The automobile industry emerged as a key player, achieving remarkable sales figures. Under the revised GST, smaller cars under 4 metres were reduced to an 18% tax slab, and the compensation cess on vehicles was completely eliminated.
On the inaugural day of GST 2.0, Maruti experienced 80,000 inquiries and delivered 30,000 cars, marking its highest single-day sales in 35 years. Bookings for compact cars surged by 50% compared to typical festival season statistics.
Hyundai's dealer billings also soared, totaling 11,000 on that day—its best performance in five years. Tata Motors achieved 10,000 car deliveries and received over 25,000 inquiries on the first day of Navratri, signaling a robust start to the festive season, characterized by increased showroom footfall, higher conversion rates, and a growing order backlog.
For many households, GST 2.0 made previously deferred dreams attainable, with automobiles becoming accessible as genuine festive purchases.
The excitement wasn't limited to physical stores; the digital marketplace buzzed as shoppers hurried to acquire fashion items, home essentials, and festive necessities.
Flipkart and Amazon launched their festive sales on Monday for loyalty program members, with sellers reporting strong early engagement, thanks to the GST reductions.
The fashion label “The Pant Project” noted a 15-20% increase in sales compared to last year, while Shadow Etail recorded a 151% traffic surge in the home essentials category week-on-week.
Fashion brands like Snitch reported a 40% increase in online orders.
The electronics sector also thrived under GST 2.0, with households taking advantage of price reductions on popular items. Split air conditioners saw price cuts of Rs 3,000-5,000, and premium TVs experienced reductions up to Rs 85,000.
Companies like Haier reported nearly double the sales compared to an average Monday, with many pre-orders placed before the new rates took effect.
Blue Star estimated that the sales on Day 1 of GST 2.0 were about 20% higher than the same day last year.
TV sales particularly surged in the 43-inch and 55-inch categories, with companies like Super Plastronics Pvt Ltd, primarily selling through Flipkart, reporting a 30-35% increase in sales.
GST 2.0 provided immediate relief and sparked consumer enthusiasm from its very first day. It lowered household expenses, rejuvenated demand across various sectors, and ignited the festive season with exceptional sales. From automobiles and electronics to groceries and fashion, every industry felt the impact.
This was not simply a tax reform; it was a celebration of savings, a catalyst for demand, and a true Diwali gift from PM Modi to the citizens of India.