GST relief to boost market festivity

Nagpur: The GST relief announced by the central government has been warmly welcomed by the market. According to experts, its impact will be clearly visible in the upcoming festive season in Nagpur, one of Central India’s key commercial hubs. Several products and services linked to festive shopping have received GST relief. This includes purchases in the automobile and electronics sectors, air tickets, and dining at restaurants.

GST rates have been reduced on products like milk, butter, ghee, salty snacks, and utensils — all of which see significant sales during festivals. In fact, Nagpur’s business activity peaks from Navratri to Diwali. Traders and customers not only from the city but from all over Vidarbha and neighboring states come here for trade. It is estimated that during the festive season alone, Nagpur sees business worth around ₹500 crore. With the GST relief, this is expected to boom even further.

In terms of products, items like utensils, two-wheelers, cars, and electronics such as TVs, refrigerators, and mobile phones are in high demand during festivals. Reducing the GST slab on LED and LCD TVs above 32 inches from 28% to 18% is expected to drive strong sales. Once considered a luxury for the upper class, air conditioners have now become a necessity for the middle class as well. With tax cuts, the AC market is expected to heat up.

Rising interest in scooters and cars

The GST relief is already showing a significant impact on the demand for small cars, motorcycles, and scooters. Dealers report that customers have started inquiring about the price differences due to tax changes. In recent times, as interest in small cars has declined and demand for SUVs has risen, the 10% tax reduction is expected to have a noticeable effect. Sales of scooters and motorcycles will clearly benefit during the festive season.

Tourism set to boom

During Diwali and Christmas vacations, a large number of people from Nagpur travel to various destinations. Similarly, many tourists arrive in Nagpur to visit the forests and spot tigers. Jungle safari will reopen from October 1. The GST relief on economy and business class air tickets for domestic travelers will positively impact the tourism industry in Nagpur and Vidarbha.

Earlier, dining at restaurants attracted 12% to 18% tax, which has now been reduced to 5%. Nagpur has hundreds of small and large hotels and restaurants. With meals becoming more affordable, customer footfall at these places is expected to rise.