GST 2.0: Should You Hold Off Shopping Until September 21?

New Delhi: Experts suggest that if you want to save money, it may be wise to pause your shopping until September 21, 2025. GST rates applicable on goods will remain the same until that date. From September 22, new GST rates will come into effect, which could reduce prices on a wide range of products.

Background: GST Rate Cut Announcement

On August 15, 2025, Prime Minister Narendra Modi announced a reduction in GST rates from the Red Fort. The announcement gave industries sufficient time to implement the changes. According to the GST Council, the new rates will be effective from September 22, coinciding with the start of the Sharadiya Navratri, a period when major shopping takes place, including vehicles and electronics. Retailers and manufacturers traditionally offer heavy discounts during this festive season.

The reduced GST slabs — 5% and 18% — mean that a wide range of products, from shampoos to cars, will become cheaper from September 22 onwards.

Experts Advise Waiting

Experts recommend that shoppers delay purchases until September 21 to fully benefit from lower GST rates.

Hardik Gandhi, Partner at Deloitte India, explained:

"Invoices should reflect the new GST rates from September 22. Retailers cannot sell goods at old GST rates even if adjustments with distributors are pending. The government expects companies to pass on the GST reduction to consumers."

This means if a product sees a 10% reduction in GST, the price should decrease accordingly.

Time Given to Businesses

Abhishek Jain, National Head (Indirect Tax) at KPMG India, said:

"Existing GST rates will apply until September 21. From September 22, new GST rates will apply. Businesses have been given ample time to implement this change in IT systems, billing software, and point-of-sale machines — approximately three weeks."

Challenges for Distributors and Dealers

A key question is: What happens to products already in stock with distributors and dealers?

• Manufacturers have billed distributors at the old GST rates.

• From September 22, these products must be sold at new GST rates.

• Refunds under the inverted duty structure will not be available, creating a challenge for some distributors.

Jain noted that while some manufacturers might compensate distributors for losses, it won’t be possible for all companies. For everyday items with high turnover, this is less of an issue, as products are sold and restocked frequently.

Bottom line: To maximize savings, consider delaying purchases until September 21, after which new GST rates and festive discounts could make shopping more cost-effective.