New Delhi [India], September 23 : GST 2.0 appears to have delivered instant relief and sparked consumer joy from the very first day, reducing household expenses, reviving demand across industries, and igniting the festive season with record-breaking sales.
From cars and electronics to groceries and fashion, every sector felt the surge. It was sort of a festival of savings, a boost to demand, and the real Diwali gift to the people of India.
On September 22, the first day of Navratri, all changes to GST rates took effect.
As the first pooja of Navratri rang out across India, the Modi government rolled out GST 2.0, the real Diwali gift to the people of India. Arriving in perfect sync with the first day of Navratri, the reformed tax regime gave the common man a direct reason to rejoice: lower prices, simplified slabs, and immediate relief on daily essentials.
PM Modi called GST 2.0 "a reform dedicated to the people of India", and true to his words, it felt less like a dry policy change and more like a festive bonanza. Car showrooms witnessed serpentine queues, online carts overflowed with orders and buzzed with record-breaking festive sales.
The automobile sector, in particular, stole the spotlight with historic numbers.
Under the new GST structure, smaller sub-4 metre cars were moved into the 18 per cent 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 per cent instead of 28 per cent. 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.
On Day 1 of GST 2.0, Maruti recorded 80,000 enquiries and delivered 30,000 cars, its highest single-day performance in 35 years. Bookings for small cars surged 50 per cent compared to usual festival season rates.
Dealer billings for Hyundai also shot up, 11,000 on that single day, representing its best performance in five years.
Tata Motors also recorded 10,000 car deliveries and over 25,000 enquiries on the first day of Navaratri, marking a strong start to the festive season, with a noticeable increase in showroom walk-ins, higher conversions, and a growing order book.
For countless families, GST 2.0 understandably transformed long-postponed dreams into reality.
The same excitement is evident in the e-commerce space, with numerous items witnessing a GST rate cut. Shoppers rushed to stock up on fashion, home essentials, and festive must-haves.
Flipkart and Amazon kicked off their festive sale events on Monday for loyalty programme users, with sellers and brands reporting strong early traction boosted by the GST cut.
Electronic items turned into another big success story under GST 2.0, with households taking advantage of reduced prices on high-demand products. While the prices of split ACs have decreased by Rs 3,000-5,000, high-end TVs have seen a price cut of up to Rs 85,000. Many electronic manufacturers have reported a substantial increase in their sales.
Electronic appliances, which had long remained in the highest tax slab, have now been brought down to a more reasonable level. Air conditioners, televisions above 32 inches (including LED and LCD models), monitors, projectors, and dishwashing machines will now attract 18 per cent GST instead of the earlier 28 per cent.
On September 3, sweeping changes were made under the next-generation GST (Goods and Services Tax) rationalisation, just days after Prime Minister Narendra Modi announced it from the ramparts of the Red Fort on Independence Day.
This is aimed at reducing the tax burden on citizens while stimulating economic growth.
The GST Council, after a threadbare discussion, approved significant rate cuts across multiple sectors, which the government has described as a Diwali gift for the nation. The announcements were made by Finance Minister Nirmala Sitharaman.
As high as 99% of all goods that were previously in the 12% GST bracket have now been brought down to the 5% GST bracket, Finance Minister Nirmala Sitharaman said recently.
In a historic move to simplify the Goods and Services Tax(GST), GST Council in its 56th meeting has reduced the GST structure from four slabs (5%, 12%, 18%, 28%) to two main rates5% (merit rate) and 18% (standard rate) along with a 40% special rate for sin/luxury goods.
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