India’s biggest online retailers are facing a tricky situation just weeks before their mega festive sales. The question is whether to launch as usual in mid-September or wait for the GST Council’s meeting on September 3–4, which may decide on tax changes.
The government is considering replacing the current four GST slabs (5%, 12%, 18%, 28%) with a simpler two-rate system of 5% and 18%. If approved, it could lower the tax on expensive products like appliances and furniture, which currently fall under the 28% slab.
This decision is critical for Amazon and Flipkart, whose flagship sales — Big Billion Days (BBD) and Great Indian Festival (GIF) — bring in nearly a quarter of their yearly revenue. A shift in GST could change consumer spending patterns, especially in large appliances that make up around 10% of festive sale volumes.
Some e-commerce platforms are lobbying the government to clarify the timeline of the new tax structure so that they can plan logistics, pricing, and promotions accordingly. Without clarity, they fear a 25–30% hit in high-value categories such as ACs, refrigerators, and furniture.
Meanwhile, customers are also holding back purchases, expecting prices to drop if GST is cut. This has slowed sales in August, but analysts believe demand will rebound strongly once there’s a clear decision.
Platforms may even delay their sales by a week or more, depending on when the GST changes are announced and how quickly they are implemented. However, not all companies are pushing for intervention — some believe heavy festive discounts can offset higher GST and are choosing to wait for the Council’s decision.
The Central Board of Indirect Taxes and Customs (CBIC) has cautioned against premature speculation, stressing that GST changes are decided collectively by the Council.
The stakes are high this year. Research firm Datum Intelligence estimates festive season sales could touch ₹1.2 lakh crore in 2025, up 27% from last year, if GST reforms are clarified in time. Without it, growth may be limited to just 5–7%.
Experts warn that delays in decisions could push customers towards offline stores offering similar discounts, hurting online platforms. For now, Amazon, Flipkart, and others are preparing for multiple scenarios, waiting to see how GST decisions unfold before finalising their festive season strategies.
