/pratidin/media/agency_attachments/2024/11/06/2024-11-06t060101441z-pratidin-logo.png){kind=logo}
/pratidin/media/member_avatars/2025/05/21/2025-05-21t080305049z-8.png )
Follow Us/pratidin/media/media_files/2025/06/02/DhUyeESew3XwMcOswnGp.jpg)
Government officials, citing industry data, said that following a GST reduction on 375 items, Indian consumers rushed to stores and car dealerships, driving the highest Navratri sales in over a decade. They noted that the move reduced prices, enabling families to upgrade vehicles, purchase white goods, and spend more freely on lifestyle products, effectively “turning festive cheer into record-breaking consumption.”
GST rates on food items, daily-use products, white goods, cement, and automobiles have been reduced after the Centre and states agreed to simplify the tax structure by cutting the number of slabs and removing the cess on all luxury and sin goods, except tobacco. While the move streamlines the indirect tax regime, it is also aimed at boosting consumption, even if it temporarily affects tax revenues.
“By rationalising GST slabs and reducing the tax burden on essential and aspirational items, the government has created an environment that encourages confident spending. Consequently, brands and retailers have reported sales growth of 25% to 100%, providing a significant boost to India’s consumption-driven economy,” said an official.
GST Reset and Pent-Up Demand Drive Sales Surge Over Past 10 Days
Although companies had initially expressed concerns about a potential slowdown in sales after Prime Minister Narendra Modi announced plans for GST rate rationalisation in his Independence Day speech, September collections—based on August transactions—grew over 9%, marking the fastest pace in four months, according to data released on Wednesday.
The surge in sales is attributed not only to more affordable goods and services, following government nudges for businesses to pass on GST benefits to consumers, but also to pent-up demand.
Automakers have seen significant upticks: Maruti Suzuki, India’s largest carmaker, recorded 3.5 lakh bookings, with nearly 2.5 lakh pending orders. By the end of Navratri, deliveries were expected to reach 2 lakh vehicles, more than double last year’s 85,000. Mahindra & Mahindra reported a 60% increase in sales of its top-selling XUV700 and Scorpio N models, while demand for Hyundai’s Creta and Venue also remained strong.
In the consumer electronics sector, companies and leading retailers are witnessing a notable rise in sales, reflecting the broader surge in festive-season spending.
Also Read: "India’s Dairy Sector Expanded by 70% Over the Past 11 Years": Amit Shah