The introduction of GST 2.0 has become a turning point for Indian shoppers and e-commerce platforms during the 2025 festive season. With revised tax slabs reducing the cost of big-ticket purchases, platforms such as Amazon and Flipkart are witnessing unprecedented demand across categories, ranging from premium smartphones to large appliances.
The sales momentum, which began on September 22, has transformed the shopping behavior of millions of consumers, signaling a strong revival in discretionary spending. Quick-commerce services, too, are experiencing explosive growth, with customers ordering premium items like iPhones and receiving them within minutes.
GST 2.0: A Catalyst for Consumer Spending
The Goods and Services Tax (GST) 2.0 reforms have revised rates across multiple product categories. This change has provided direct savings for customers while encouraging retailers and sellers to pass on the benefits.
According to Flipkart executives, consumers were delaying purchases in anticipation of these reforms. Once the revised slabs came into effect, a surge in interest and spending was observed, especially in electronics, home appliances, and premium gadgets.
Pratik Shetty, VP of Growth and Marketing at Flipkart, said,
“Shoppers have been holding back purchases in anticipation of this shift. Early trends already reflect a surge in interest, now that the reforms are here.”
Short Summary in Table
Aspect |
Details |
|---|---|
Policy Change |
GST 2.0 reforms with revised slabs effective September 22, 2025 |
Flipkart Growth |
2.6X rise in new customers, iPhone deliveries under 3 minutes |
Amazon Growth |
Multi-fold demand across smartphones, appliances, fashion, and beauty |
Quick Commerce Impact |
45 lakh unique visitors, 2X rise in orders on Flipkart Minutes |
Offline Retail Impact |
Higher footfall at Croma and Vijay Sales; surge in premium TV sales |
Metro Cities |
Delhi, Mumbai, Bengaluru, and Kolkata saw a 2X rise in early orders |
Tier 2+ Cities |
Jaipur, Patna, Ambala, and Mysore recorded up to 4X growth |
Official Resource |
Flipkart’s Festive Sales Surge
Flipkart curated a dedicated GST 2.0 store to highlight products benefiting from reduced rates. This strategic move boosted customer engagement, resulting in:
- A 2.6X rise in new customers during Early Access among Flipkart Black and Plus members.
- A significant jump in high-value purchases, including premium smartphones and large appliances.
- Growing trust in Flipkart Minutes, the company’s quick-commerce arm.
Flipkart revealed that during Early Access, the highest cart value touched ₹1.57 lakhs, and iPhone deliveries were completed in under three minutes. The iPhone 16 emerged as the highest-selling product.
Hemant Badri, SVP of Flipkart Group, added,
“With the recent GST reforms, customers are celebrating tangible savings. Flipkart worked to ensure sellers passed on these benefits, making festive purchases more rewarding.”
Amazon’s Multi-Fold Growth During Great Indian Festival
Amazon India also reported robust numbers during the Great Indian Festival, which began with exclusive access for Prime members. Categories witnessing the strongest demand include:
- Smartphones
- Large-screen televisions
- Consumer electronics
- Fashion and beauty products
Saurabh Srivastava, VP of Categories at Amazon India, stated,
“Premium segments are performing exceptionally well. From smartphones to consumer electronics and fashion, customers are shopping for deals across all categories.”
Amazon has also worked to smoothly transition sellers to the revised GST rates, ensuring customers benefit directly from lower taxes.
Quick Commerce: The New Shopping Trend
Quick commerce is evolving from grocery and essentials delivery to premium product fulfillment. Flipkart’s under-3-minute iPhone delivery highlighted the growing trust in instant commerce for high-value products.
Key stats from Flipkart Minutes during Early Access:
- 45 lakh unique visitors logged in.
- 2X rise in order volumes compared to regular days.
- Growing demand in Tier 2 and Tier 3 cities, including Jaipur, Patna, Kanpur, and Mysore.
This reflects a broader behavioral shift where consumers are no longer restricting instant delivery to essentials but extending it to luxury and premium gadgets.
Impact Beyond Online: Offline Retail Benefits Too
The impact of GST 2.0 is not limited to e-commerce. Offline retail chains such as Croma and Vijay Sales have also reported significant increases in footfall and purchases.
- Croma: Customers are upgrading to premium televisions and appliances. Shibashish Roy, CEO and MD of Infiniti Retail Ltd, said,
“With leading brands aligning pricing to the new directives, this truly is the ideal time for customers to upgrade and shop smart.” - Vijay Sales: Footfall and delivery volumes nearly doubled on weekdays, a rarity in retail trends. Director Nilesh Gupta explained,
“Sales volumes had dipped below 50% in recent weeks. With GST benefits kicking in, customers now have greater flexibility to spend on multi-product purchases.”
Metro and Tier 2+ Market Response
The festive sales boom is not restricted to metropolitan cities. While Delhi, Mumbai, Bengaluru, and Kolkata saw a 2X surge in orders, Tier 2+ cities like Pune, Ambala, Chandigarh, Jaipur, and Patna reported even higher growth, with some locations witnessing a 4X jump in total orders.
This indicates that GST 2.0 is fueling consumption across the country, bridging the gap between metros and smaller markets.
Frequently Asked Questions (FAQs)
Q1. What is GST 2.0 and how does it affect shoppers?
GST 2.0 refers to the revised tax slabs implemented in 2025, reducing GST rates on several consumer categories, thereby making products cheaper.
Q2. Which platforms benefited most from GST 2.0?
Both Amazon and Flipkart saw multi-fold growth across premium segments, while offline retailers like Croma and Vijay Sales also experienced higher footfall.
Q3. How is quick commerce changing festive shopping?
Quick commerce is now delivering premium products like iPhones and flagship Android models within minutes, reflecting growing consumer trust in instant delivery.
Q4. Did Tier 2 and Tier 3 cities benefit from GST 2.0?
Yes, several Tier 2+ cities saw 3X to 4X growth in orders, showing strong adoption of e-commerce and quick commerce beyond metros.
Q5. Are offline retailers also passing GST benefits to customers?
Yes, offline players like Croma and Vijay Sales confirmed that they are passing on full GST benefits, making premium upgrades more affordable.
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