Navratri Sales Soar As GST Cuts Boost Consumer Spending

Indian consumers flocked to stores and car dealerships during Navratri, driving the highest sales in over a decade, government officials said, citing industry data.

Officials noted that a reduction in GST on 375 items lowered prices, enabling families to upgrade vehicles, buy white goods, and spend more on lifestyle products, turning festive cheer into record-breaking consumption.

GST Rationalisation Across Key Sectors

The Centre and state governments slashed GST rates on food items, daily-use products, white goods, cement, and automobiles. They also simplified the tax structure by reducing slabs and ending cess on luxury and sin products, excluding tobacco. Officials said the move aimed to boost consumption while temporarily affecting tax collections.

“By rationalising GST slabs and easing taxes on essential and aspirational items, the government fostered confident spending,” an official said. “Brands and retailers reported sales growth from 25% to 100%, giving a major boost to India’s consumption-driven economy.”

Despite initial concerns from companies about adverse effects after PM Narendra Modi’s Independence Day announcement of GST rationalisation, September collections (based on August transactions) grew over 9%, the fastest pace in four months.

The rise in sales was driven both by lower prices and pent-up demand over the past 10 days.

Maruti Suzuki reported 3.5 lakh bookings, with nearly 2.5 lakh pending orders. By the end of Navratri, the company expected to deliver 2 lakh vehicles, 2.3 times last year’s 85,000 cars.

Mahindra & Mahindra recorded a 60% jump in XUV700 and Scorpio N sales, while demand for Hyundai’s Creta and Venue remained strong.

Retailers and consumer electronics companies also reported significant sales growth, benefiting from GST cuts and increased festive spending.

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