GST 2.0 turns Navratri into a big shopping day

For weeks, families across India postponed buying cars, air-conditioners, and even everyday appliances, waiting for one date--September 22.

When the reworked Goods and Services Tax (GST 2.0) became effective on the first day of Navratri, the pent-up demand burst into action. From automobile showrooms to online platforms, retailers forgot Monday blues and were in action mode.

Effective September 22, the Goods and Services Tax (GST) structure has been simplified into two slabs of 5% and 18%. The earlier four rates of 5%, 12%, 18%, and 28% were merged, reducing the overall burden on consumers. Nearly 99% of daily-use items now attract a lower price, creating instant relief for households.


This realignment also removed the compensation cess on automobiles, further lowering prices for small and mid-sized vehicles.

Automobiles lead the surge

Under the new GST structure, smaller sub-4 metre cars were moved into the 18% slab, while the compensation cess on automobiles was completely removed. Petrol and petrol hybrid cars, along with LPG and CNG variants that do not exceed 1200 cc and 4000 mm in length, are now taxed at 18% instead of 28%. Diesel and diesel hybrid cars with engines of up to 1,500 cc and a length of up to 4,000 mm will also see the same reduction.

The automobile sector emerged as the biggest beneficiary. Maruti Suzuki recorded 80,000 enquiries and 30,000 deliveries in a single day, its highest in 35 years. Hyundai clocked 11,000 dealer billings, its best in five years, while Tata Motors delivered 10,000 cars and logged over 25,000 enquiries.

Industry data showed a sharp jump in bookings for small cars, which now fall under the 18% GST slab with the compensation cess removed. This shift significantly lowered costs for entry-level buyers.

Online platforms see heavy traffic

E-commerce majors Flipkart and Amazon also reported strong traction as they kicked off their festive sales for loyalty members on the same day. Sellers noted a surge in categories ranging from fashion to home essentials.

Fashion brand Snitch saw a 40% rise in orders, while The Pant Project reported a 15–20% increase over last year. Shadow Etail, a key seller on both platforms, reported a 151% spike in home essentials traffic compared to the previous week.

Amid the festive buying rush, the Centre is also monitoring whether e-commerce platforms and FMCG companies are passing on the tax relief to consumers.

A government source told PTI, “We are monitoring the price changes. Field formations are monitoring, and we will get the first report from them by September 30.”

The source added, “We do not want a knee-jerk reaction to such complaints.”

On September 9, the finance ministry had written to Central GST field officers to submit monthly reports on price changes for 54 common items, including butter, shampoo, toothpaste, jams, ice cream, TVs, ACs, cement, and diagnostic kits. The first report is due with the Central Board of Indirect Taxes and Customs (CBIC) by September 30.

Electronics dominate festive carts

Electronics retailers experienced a sharp surge in demand as GST cuts lowered prices on air-conditioners and televisions. Split ACs dropped by ₹3,000–₹5,000, while premium TVs saw reductions of up to ₹85,000.

Haier reported nearly double the sales of a typical Monday, while Blue Star estimated a 20% year-on-year increase. Super Plastronics, which retails televisions largely through Flipkart, reported 30–35% higher sales in the 43-inch and 55-inch TV segments.

A Festive boost to Demand

Government described GST 2.0 as a reform aimed at directly easing household budgets and reviving consumption. By lowering rates on almost all daily-use goods and removing the automobile cess, the new structure has triggered what officials called a “festival of savings.”