GST Cut Sparks Record-Breaking Navratri Sales Across India

Indian consumers rushed to stores and car dealerships during Navratri, driving the highest festive-season sales in over a decade, government officials said, citing industry data. The surge comes on the back of a GST reduction on 375 items, which officials said lowered prices and encouraged families to upgrade vehicles, buy white goods, and spend more freely on lifestyle products, effectively turning festive cheer into record-breaking consumption.

The new GST structure, which took effect recently, slashed rates on food items, daily-use products, white goods, cement, and automobiles. The Centre and states also rationalised the number of tax slabs and removed cess on all luxury and sin products, except tobacco. The reform aims to simplify the indirect tax regime and boost consumption, even if it temporarily impacts tax revenues.

“By rationalising GST slabs and easing the tax burden on both essential and aspirational items, the government fostered an environment of confident spending,” an official said. “Brands and retailers reported sales growth ranging from 25% to 100%, providing a major boost to India’s consumption-driven economy.”

Despite initial concerns from companies about the potential impact of the GST rationalisation plan, September collections—based on August transactions—grew over 9%, marking the fastest pace in four months. Analysts attributed the surge to both more affordable goods and pent-up consumer demand.

Automobile sales were particularly strong. Maruti Suzuki reported 3.5 lakh bookings, with nearly 2.5 lakh pending orders, and expected to deliver 2 lakh vehicles by the end of Navratri—2.3 times last year’s 85,000 units. Mahindra & Mahindra (M&M) saw a 60% jump in sales of its XUV700 and Scorpio N models, while Hyundai’s Creta and Venue also experienced strong demand. Consumer electronics and lifestyle products similarly recorded significant sales growth, reflecting a broad-based consumption boom across sectors.