Commercial festive sales prepare to increase 25 % on commodity tax rates discounts

The e -commerce sector in India is preparing for one of its strongest festive seasons so far, as sales are expected to rise against the backdrop of the discounts of the commodity tax and recent services through the main consumer categories. Analysts say the timing of reform – before the ceremonial rush – will significantly enhance the demand, with the support of improving the ability to withstand costs and regenerate consumer confidence.

According to Deloitte, low commodity and services tax on basic devices and consumer goods will make technology and home products accessible to Indian families. Categories such as TVs and air conditioners, which were previously attracted by 28 % of the commodity and services tax, will now be imposed by 18 %. Likewise, kitchen appliances and home necessities such as utensils, table tools, lighters and LED lights will decrease tax rates to 5 %.

It coincides that these categories are the largest clouds of e -commerce platforms such as Big Billion Days’s Flipkart and the wonderful Amazon Indian Festival, which is preparing for the largest shopping events in the season. According to Redseer, the devices are expected to benefit more than others, because it is a large category for tickets and can significantly raise the difference in the demand.

Speaking to Business Today, a Amazon spokesman said, “This aspiration reform brings the ability to predict and stability that affects the need in the tax framework. It also enhances the site of India as a destination for continuous investment and innovation in e -commerce. With a decrease in commodity and services tax on the famous festive purchases, along with the exciting clients planned by sellers, customers can They look forward to the great savings this year in the wonderful Indian festivals. “

Industrial expectations are up. Kushal Batnagar, assistant partner at Redseer Strategy Consultans, estimates that festive e -commerce sales may grow approximately 25 % on an annual basis, and record approximately 1.2 rupees in GMV this season.

Ravi Saxena, co -founder and CEO of Wonderchef, added that the price cuts will in particular benefit the ambitious middle -class families. He said: “The promotional rates will make high -quality kitchen cooking devices more affordable.

According to RedSeer data, rapid trade is expected to increase by 150 % on an annual basis, and become a new driver for defense and comfort.

However, anxiety over the products that have already bought e -commerce platforms of brands, with festive sales of the corner or lower. How consumers will benefit in such cases, still uncertain. Analysts suggest that platforms or brands may absorb part of the tax reduction to remain competitive, and may have been transferred to buyers through pricing modifications or by tax credit.

Satish Mina of Datum Intelligence believes that this festive period can be standard. “This is the peak season for players in e-commerce, who are preparing months ago with the launch of products, EMIS without cost, loans, and attractive discounts. Senery are ready to pay deals, and customers reach shopping lists-which led to the addition of flowing ceremonies. This makes the ideal storm for e-commerce.”