India’s largest e-commerce companies are confused about the start of the festive sale this time. Like every year, this time Flipkart’s Big Billion Days and Amazon’s Great Indian Festival Sale are to start from mid-September, but the GST Council meeting is proposed on 3-4 September.
The festive season is the biggest occasion of the year for e-commerce companies. Companies like Flipkart and Amazon attract customers through huge discounts at this time. But this time, the problem is that the government may consider changes in the GST slab on 3-4 September. There is speculation of reducing the 28% tax, especially on large electronic and furniture products. If the tax rates are reduced, customers will get products at a lower price, and there will be a big jump in the sales of the companies.
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The strategy of the companies is divided into two parts
According to reports, a big e-commerce company is in constant touch with the government and wants clarity soon so that the sales planning is not affected. They believe that the delay in tax reduction can affect the sale of expensive products by 25 to 30 percent. On the other hand, another big company has decided not to talk directly to the government. They say that if the tax is not reduced, they will attract customers by giving aggressive discounts.
Customers wait and hope
The effect of this dilemma is clearly visible on the customers as well. Many people are currently holding back on shopping so that they can buy products from the sale at a cheaper price when the GST is reduced. According to Satish Meena, founder of Datum Intelligence, people are waiting for big deals but are currently postponing shopping.
Possible impact on festive business
The festive season business grows rapidly every year. In 2024, this figure had reached Rs 1 lakh crore. This time, it is expected that the 2025 sale will go up to around Rs 1.2 lakh crore, which will be a growth of 27%. However, if the tax cut is not decided on time, then this growth may come down to only 5 to 7%.
Government stance and warning
The Central Board of Indirect Taxes and Customs (CBIC) has made it clear that the decision of the GST Council will be taken collectively. Also, people have been advised to avoid rumors spread on social media or hasty conclusions.
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Double preparation of companies
At present, e-commerce companies are preparing two different plans. If the tax is reduced, then the date of the sale will be extended a little, and the prices will be changed. On the other hand, if there is no change in the tax, then the companies will launch the festive sale on time. In this way, this time the real thrill does not depend only on the discount but on the decision of the government.