Revisions in goods and services tax (GST) slabs are expected to give a major push to India’s festive online shopping season. Amazon India has said that the changes, which take effect on September 22, will shape prices, deals and even the way sellers operate during its flagship Great Indian Festival that kicks off on September 23.
Saurabh Srivastava, vice-president (categories), Amazon India, explained that two factors are at play this year. First, the government has cut GST rates across several categories, which means lower prices can be passed on to customers. Second, sellers no longer need to maintain a physical office in every state to hold inventory, a change expected to ease operations. Combined, these moves could make this festival season larger than earlier ones, Srivastava suggested.
Amazon Prime members will get a 24-hour head start when the sale opens, with over 100,000 products lined up from more than 1.7 million sellers. Rival Flipkart’s Big Billion Days Sale also begins on the same day, setting the stage for a head-to-head showdown in India’s e-commerce market.
Last year’s festival saw 1.4 billion customer visits, according to Amazon. Srivastava pointed out that Prime Day in July already hinted at strong demand, with 18,000 orders being placed every minute — a 50% rise compared to the previous year. Whether GST-driven price drops can amplify that demand further is something many will be watching.
Asked about a lull in electronics and other big-ticket purchases, Srivastava said a slowdown is usual in the weeks leading up to a big sale. But this time, with GST cuts being widely advertised and backed by the government, expectations are higher that shoppers will make bigger purchases once the festival begins.
