Amazon & Flipkart hail GST clarity ahead of mega festive sales
GST Council introduces simplified 5% and 18% rate structure
Big-ticket items like ACs, TVs, dishwashers move from 28% to 18% GST
E-commerce giants Amazon and Flipkart lauded the Goods and Services Tax (GST) Council’s latest reforms, saying that it offers much-needed clarity for sellers and platforms due to streamlined tax framework. The announcement of simplified two-tier rate structure of 5% and 18% GST rate comes just days before the upcoming festive sales season.
Both Amazon and Flipkart will come up with the Great Indian Festival 2025, and the Big Billion Days 2025, respectively. Though Flipkart has not announced exact dates yet, Amazon's Great Indian Festival will begin on September 23. The GST reforms can bring win-win situation for both e-commerce platforms as well as customers.
Buyers will have more spending power in the upcoming festive season, and sellers can leverage the simplified tax framework to offer sharper discounts, expand product choices, and tap into pent-up demand for big-ticket categories like appliance, electronics, etc. The GST Council, at its 56th meeting, reduced rates on large appliances from 28% to 18%. The new GST rates will come into effect from September 22, 2025.
“By lowering input costs for farmers, simplifying compliance for MSMEs, and enabling small sellers, artisans/weavers and smallholder farmers to seamlessly join e-commerce across states, these reforms will further strengthen India’s growth engine,” said Rajneesh Kumar, chief corporate affairs officer of Flipkart Group.
He believes that timely implementation of these reforms ahead of the upcoming festival season will surely give a huge boost to consumption across categories, widen market access, and accelerate the company’s collective journey towards a Viksit Bharat.
Amazon spokesperson, too, said that this forward-looking reform brings much-needed predictability and stability to the tax framework. The streamlined approach will help reduce complexity for the hundreds of thousands of sellers selling through Amazon’s marketplace.
“…India's position as a destination for continued investment and innovation in e-commerce. With a reduction in GST on popular festive purchases, along with exciting deals already planned by sellers, customers can look forward to great savings this Amazon Great Indian Festival,” he added.
Analysts Remain Divided
Analysts believe the GST council’s latest reforms can reshape this year’s festive sales for e-commerce players, with lower tax rates across key categories expected to unlock fresh consumer spending. The changes are seen as a “consumption booster” that will leave shoppers with more money in hand.
Under latest reforms, many mass-consumption categories have moved from 12% or 18% GST to 5%. Cars and bikes with certain engine capacities now have a flat 40% GST without additional cess, which also reduces prices.
“There may be a short waiting period until September 22, as customers know the new rates take effect then. Most likely, the big festive sales will kick off right after, around September 25 or 26, which falls on a Friday weekend. That’s when most of the big-ticket sales like ACs, TVs, dishwashers, and appliances will happen,” said Satish Meena, founder of Datum Intelligence.
However, Meena noted that the only concern is with apparel and footwear priced above ₹2,500, which now attract 18% GST. Earlier, the 5% slab applied only up to ₹1,000, but now it covers items up to ₹2,500. “This helps brands adjust, though premium and branded apparel will feel the higher tax impact”.
“While branded apparel will fall under the 18% slab, a significant chunk of products remains within the ₹2,500 price range that benefits from the 5% GST. The government had to maintain balance across categories, and while ₹2,500 may seem low, we might see this threshold raised to ₹3,000–₹4,000 in future updates,” he highlighted.
On the other hand, Karthik Mani, Partner – Indirect Tax at BDO India asserted that the impact of these reforms would not be felt in the upcoming festive sales since the scheme is yet to be formulated and approved by the GST Council, which would then be implemented, post approval by the council.
While Mani stressed the procedural lag before the scheme translates into the festive season, analysts like Ankur Bisen, senior partner at The Knowledge Company caution that tax tweaks alone cannot offset deeper pressures on household incomes. He even believes that the GST change is more about easing compliance and improving ease of doing business than driving immediate consumption.
“Consumption is tied to real income. If real wages don’t rise, GST alone won’t create spending power. Add to that the floods in North India and challenges in blue-collar industries like sugarcane, textiles, and IT layoffs—household incomes are under pressure,” Bisen noted.
According to him, the spikes could be temporary. For instance, people delay purchases like ACs or appliances until festive discounts, so sales spike in October. But the real test, Bisen said, will be whether this year’s spike is higher than last year’s 10–15%.
Preetam Jena, head of eCommerce at Fixderma echoes similar sentiments, saying prices on packs won’t change overnight since inventory is already out. "...for the consumer, discounts may look the same, but for brands, profitability improves and deal tag flexibility goes up".
"Since inventory is already in trade, list prices remain printed with the old GST. So, retailers can’t use “lower prices” as a flashy consumer hook. It’s more of a margin story than a sales pitch," said Jena.
Amazon, Flipkart Festive Season Sale
Usually, both online marketplaces launch these mega annual sales around major festivals like Diwali. September 22 marks the start of Navratri, so platforms can begin anytime after that, said Meena.
“Our estimate is that festive sales will launch on September 25 (Friday), with early access for Prime and Flipkart Plus members a day before. They could even experiment with a late-night launch on the 22nd, but realistically, the big push will come that weekend,” he predicted.
During this time, Amazon and Flipkart offer deep discounts on a wide range of products, especially, electronics like premium smartphones and laptops. This year, popular models like Samsung Galaxy S25, Google Pixel 10, and Samsung Galaxy S24 are expected to witness huge price cuts.
There are also rumours that iPhone 16 may reach its lowest price in India, at a time when the iPhone 17 series is expected to be launched soon. Besides these products, customers can also look forward to incredible deals across fashion, home essentials, and other categories, along with AI-driven shopping experiences.
Datum Intelligence forecasts that India's online festive season sales in 2025 will generate approximately ₹1.2 lakh crore, up from about ₹1 lakh crore in 2024 and ₹81,000 crore in 2023.
