GST Reforms: Largest Navratri Sales in 10 Years, GST Reforms Boost Festive Spirit

GST Reforms: India recorded its largest sales in 10 years this Navratri, attributed to increased festive demand and the benefits of NextGen GST reforms. According to government sources, simplification of GST slabs and measures to make essential and aspirational goods easily accessible boosted consumer confidence and led to record-breaking consumption in key sectors. A senior government official said, "The Modi government's GST reforms reduced the tax burden on the middle class and boosted consumer aspirations in India. This Navratri demonstrated the impact of these reforms on the ground."

GST Reforms and the New Tax Structure

India adopted a two-tier GST system from September 22nd. Most goods and services are now taxed at 5% and 18%, while ultra-luxury items are taxed at 40%. This provided relief to both consumers and industry, boosting consumption during the festive season.

Effect of the Festival on the Auto Sector

The automobile industry was the biggest beneficiary of Navratri sales.

Growth in Consumer Electronics and Retail

The consumer electronics and retail sectors saw significant growth during Navratri. Haier sales increased by 85%, and Diwali inventory of premium large-screen TVs was nearly depleted. Sales in categories such as smartphones, fashion, and TVs increased by 20-25% at Reliance Retail, while Vijay Sales and LG India also recorded strong growth, attributed to festive offers and price stability due to GST.

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