GST 2.0’s Navratri debut drives record auto, e-commerce sales

The rollout of GST 2.0 on Monday, coinciding with the first day of Navratri, sparked a nationwide shopping spree in the festival season, with the automobile industry emerging as the star of the reformed tax regime due to slashed taxes and unprecedented demand.

Smaller sub-4-metre cars, now taxed at 18 per cent after the complete removal of compensation cess, have turned hot favourites as bookings surged by 50 per cent compared to typical festive season demand.

Maruti Suzuki reported a record 80,000 enquiries and 30,000 car deliveries on Monday, marking its best single-day performance in 35 years. Hyundai also rode the wave, billing 11,000 vehicles in a single day, its strongest performance in five years. Tata Motors also delivered 10,000 cars and recorded over 25,000 enquiries, with showroom walk-ins and conversions soaring, said a company spokesperson.

“We have seen that a lot of inquiries are happening. A lot of customers are coming into our showrooms and they want to shop. We are enthusiastic about the fact that the growth is there and all of us are going to be part of this whole growth story,” said Federation of Automobile Dealers Associations president CS Vigneshwar. The digital marketplace too buzzed with excitement as shoppers flooded online platforms to stock up on fashion and home essentials. Flipkart and Amazon on Monday launched their festive sale events for loyalty programme users, reporting robust early traction fuelled by GST cuts.

Fashion brand The Pant Project saw a 15-20 per cent jump in sales compared to last year, while Shadow Etail, a seller on both platforms, recorded a 151 per cent surge in traffic for home essentials. Fashion brand Snitch reported a 40 per cent increase in online orders, underscoring the GST-driven consumer rush.

Under the new tax regime, rates of split ACs have dropped by Rs 3,000-5,000, while high-end TVs saw price cuts of up to Rs 85,000. Haier reported nearly double its usual Monday sales, with many customers pre-booking to capitalise on the new rates. Blue Star noted a 20 per cent sales increase compared to the same day last year, while TV sales, particularly in the 43-inch and 55-inch segments, surged by 30-35 per cent, according to Super Plastronics Pvt Ltd, a key Flipkart seller.

GST 2.0 had proven to be more than a tax reform as it was a festival of savings that had slashed household expenses, revived demand across industries and set the stage for a blockbuster festive season, a government official said.

Prime Minister Narendra Modi had hailed GST 2.0 as a reform dedicated to the people of the country and aimed at delivering lower prices, simplified tax slabs and immediate relief on daily essentials.