Walmart-owned Flipkart and Amazon have started discussions with leading brands on how to manage the potential impact of a proposed GST reduction. The ecommerce majors fear that consumers could delay purchases in anticipation of lower prices, particularly for high-value categories like electronics.
The timing is crucial as the platforms gear up for their flagship festive sales in September, which are the biggest annual events for online marketplaces. These sales typically begin just before Navratri and contribute nearly half of festive ecommerce revenues in India.
The GST Council is expected to meet in the third week of September to finalise new rates and implementation timelines. The proposal under consideration aims to merge the current 12% and 28% slabs into two rates—5% and 18%—while levying a higher 40% tax on sin goods such as alcohol, tobacco, and select luxury items.
Flipkart’s Big Billion Days and Amazon’s Great Indian Festival are set to go ahead as scheduled around September 16–19, industry sources indicated. However, both companies have advised partner brands to prepare for a potential demand surge in October, should the new GST rates come into effect earlier than expected.
Brands have reportedly been asked to ensure sufficient inventory in anticipation of a price drop of around 8–9% following the rate cut, which could boost demand in the later phases of festive sales, closer to Diwali.
⚠️ Disclaimer: This article is based on industry reports and information available at the time of writing. GST rate changes are subject to final decisions by the GST Council. Readers should rely on official notifications for accurate tax implementation details.
