“Retailers are managing elevated inventory levels, while categories such as electronics and appliances are seeing deferred demand. E-commerce majors are already engaging with brands to prepare for a likely surge in demand during the latter phases of the festive season in October, once the revised GST rates are formalized.
“The expected changes will also influence pricing strategies, as platforms recalibrate product positioning to reflect the new tax structure. Overall, while the near-term impact is a temporary dip in sales, the market is poised for a sharp rebound once there is clarity on the new regime,’ he said.
E-commerce platforms, whose flagship sales in the festive season contribute a significant quarter of their annual revenues, are aware of the impact these potential tax changes could have on their sales strategies.
However, the industry believes that despite this immediate caution, the inherent strength of India’s festive shopping culture is a powerful counter-narrative.
Shiprocket MD and CEO Saahil Goel said festive shopping in India is both cultural and emotional.
Families plan purchases around festivals, whether it is a new appliance, a gadget, or a home improvement. This underlying demand remains intact, and if anything, GST rationalisation will only serve as an added incentive for consumers to buy more confidently. The deduction in slabs is a plus, it improves affordability, broadens access, and strengthens purchasing power at the right time of the year,’ he said.
Rajneesh Kumar, Chief Corporate Affairs Officer at Flipkart Group, views GST rationalisation as a ‘structural reform that will give a strong boost to consumption, energise festive demand, and support India’s growth story’.
Despite the current lull, the outlook remains upbeat. Malpani projects a 15–20% surge in festive e-commerce sales once the reforms are enacted, especially in electronics and quick-commerce platforms.
This rebound, he explained, will be driven by enhanced consumer confidence, simplified compliance, and increased affordability.
