GST reforms spur shopping boom ahead of Diwali and Dhanteras

The recent Goods and Services Tax (GST) reform has brought visible relief to consumers, with prices of several essential and electronic products falling sharply.

The move has made goods more affordable for the middle class and is driving a surge in festive season shopping across the country. 

A resident of Basti district in Uttar Pradesh told IANS that due to the reduction in GST, the prices of various products have come down more than expected. People have been waiting for the implementation of the GST reduction ever since it was announced. Now, the market is witnessing huge crowds of buyers amid shopping for Diwali, and Dhanteras has commenced.

Meanwhile, another resident of the district said that due to GST, the prices have come down by more than 10 per cent, and the prices of electronic products have also come down.

Apart from this, keeping in view the festive season, companies are also coming up with offers to attract customers, he added.

Earlier last week, the Federation of Automobile Dealers Associations (FADA), India’s automobile industry, recorded its highest-ever sales growth during the Navratri period from September 22 to 30, witnessing a 34 per cent year-on-year increase.

Passenger vehicle sales grew by 34.8 per cent, while two-wheeler sales rose 36 per cent during the same period. Overall, total sales in September climbed 5.22 per cent to 1,827,337 units, compared to 1,736,760 units a year ago.

FADA noted that inquiries and bookings have increased significantly across the two-wheeler, passenger, and commercial vehicle segments. With improved logistics and transportation, industry experts believe this could be India’s best-ever festive retail season, as supply chains are well-positioned to meet soaring consumer demand.

The significant changes made to India's Goods and Services Tax (GST) system, known as GST 2.0, went into effect on September 22, 2025. Prime Minister Narendra Modi formally unveiled the "next-generation GST reforms," which are intended to simplify the tax code, make compliance easier, and lower the tax burden on necessities.

Picture Courtesy: IANS