Will GST 2.0 Reforms Create New Diwali Shopping Records?
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Synopsis
Economists predict that the recent GST 2.0 reforms will lead to unprecedented Diwali shopping records in India. With rising purchasing power and historically low inflation, consumers are expected to spend more this festive season, benefiting traders and the economy alike.
Key Takeaways
- GST 2.0 reforms are expected to boost Diwali shopping.
- Purchasing power is rising due to lower prices.
- Inflation has reached a historic low.
- Traders are set to benefit from increased consumer spending.
- The festive atmosphere is likely to be more vibrant this year.
New Delhi, Oct 14 (NationPress) Economists announced on Tuesday that the GST 2.0 reforms are poised to set new records for Diwali shopping in the nation, fueled by a significant rise in purchasing power and a historic decline in inflation.
The decrease in GST has resulted in increased disposable income for consumers, and as purchasing power rises, inflation tends to decrease naturally.
Harvansh Chawla, Chairman of the BRICS Chamber of Commerce and Industry, shared with IANS that the impact of reduced retail prices has been most pronounced among the lower and middle-income groups. Individuals who previously could afford only one product priced at Rs 100 can now purchase several items.
He stated, "This is going to be a historic Diwali."
Chawla added, "Sales during this Diwali season will be extraordinary, benefiting traders significantly."
In the words of economist Dr. Manoranjan Sharma, India’s inflation rate, as per the Consumer Price Index (CPI), has dropped to an impressive 1.54 percent in September, marking an over 8-year low, primarily due to decreasing prices of food and fuel.
Additionally, the annual inflation rate based on the Wholesale Price Index (WPI) fell to 0.13 percent in September from 0.52 percent in August.
September GST collections reached Rs 1.89 lakh crore, showcasing a 9.1 percent year-over-year growth, reflecting the recent tax rate cuts.
Dr. Sharma remarked, "The average consumer now has more money available, referred to as disposable income, which has provided relief to millions."
He further noted that, "This Diwali, we can expect a substantial boost in shopping activities due to the GST reductions. The festive spirit will be more vibrant than ever, allowing people to shop freely, benefitting traders in the process."
The GST reforms have resulted in lower prices, improved credit flow, resolution of tax inversion issues, and fewer disputes, ultimately reducing costs for both producers and consumers.
Point of View
The GST 2.0 reforms signify a transformative period for the Indian economy. By enhancing purchasing power and reducing inflation, these changes are expected to foster a vibrant festive season. It is crucial for the government to continue supporting this momentum for sustainable economic growth.
NationPress
14/10/2025
Frequently Asked Questions
What are GST 2.0 reforms?
GST 2.0 reforms refer to the updated Goods and Services Tax regulations aimed at simplifying tax structures and reducing rates.
How do GST reforms affect consumer spending?
By lowering tax rates, GST reforms increase disposable income for consumers, enabling them to spend more, especially during festive seasons.
What is the current inflation rate in India?
As of September, India's inflation rate based on the Consumer Price Index is at a historic low of 1.54 percent.
How will Diwali shopping be impacted this year?
Economists predict significant increases in shopping due to enhanced purchasing power and lower prices resulting from GST cuts.
What are the benefits of GST reforms for traders?
GST reforms lead to lower costs, improved credit flow, and fewer disputes, allowing traders to benefit from increased sales and better margins.
