India’s biggest e-commerce companies are facing uncertainty over the start of this year’s festive sales.
As usual, Flipkart’s Big Billion Days and Amazon’s Great Indian Festival were expected to begin in mid-September.
However, the GST Council meeting scheduled for September 3–4 has put things on hold. Now the question is—should the companies begin the sale as planned or wait for the government’s decision?
Why is there confusion?
There are talks that the government might make changes to the 28% GST slab applied to large items like air conditioners, refrigerators, TVs, and furniture.
If the tax is reduced, prices of these products would go down, which could boost customer purchases. On the other hand, if there’s no change, high prices may hold back demand for such expensive products.
According to reports, one major e-commerce company is actively in touch with the government, urging them to make a quick decision on GST.
They believe that a delay in tax reduction could reduce sales of products like fridges and ACs by 25–30%.
Different strategies by companies
While one company is pushing for early clarity, other big players are staying silent, choosing not to approach the government directly.
Their plan is simple—if the GST is reduced, great, but if not, they’ll offer deep discounts to keep buyers interested.
This ongoing uncertainty is also affecting customer behavior. Many people are delaying their purchases, hoping for lower prices if the tax is reduced during the sale.
Satish Meena, founder of Datum Intelligence, says customers are eager for deals but are currently waiting and watching.
Why the festive season matters
The festive season is critical for online shopping platforms. In fact, the 2025 festive sale is expected to reach ₹1.2 lakh crore, a 27% increase from last year’s ₹1 lakh crore.
But if the GST decision is delayed, growth may slow down to just 5–7%.
Meanwhile, the CBIC (Central Board of Indirect Taxes and Customs) has clarified that any decision on GST will be made collectively by the council.
It has also warned against spreading rumors on social media or making assumptions before official announcements.
Companies preparing for both scenarios
At the moment, companies are preparing two plans—one in case GST is reduced, and another if it remains the same.
They explain that updating logistics, delivery, and inventory systems takes several weeks.
If the tax changes, the sale might be postponed to adjust prices. But if there’s no change, sales will begin as scheduled.
Final thoughts
This year, the buzz around the festive season isn’t just about discounts, but also about the government’s decision on GST.
If there’s clarity soon, online platforms could see record-breaking sales.
But if there’s a delay, many shoppers may shift to offline stores, where retailers are also planning to offer big discounts.
