This festive season, shoppers may get more value for their money as the government’s latest Goods and Services Tax (GST) reduction promises to make electronics cheaper. Starting September 22, several products that were earlier taxed at 28% including air conditioners, large-screen TVs, monitors, projectors and dishwashers will now fall under the 18% GST slab.
SurveyThe timing works out well for consumers as Flipkart’s Big Billion Days sale and Amazon’s Great Indian Festival sale are both set to begin on September 23, 2025.
Discounts to turn aggressive
Analysts believe the GST cut will help lift overall sentiment and boost demand during upcoming Amazon and Flipkart sales. Tarun Pathak, Research Director at Counterpoint Research, notes that the market could see “at least 4% growth by volume and 8-9% by value.”
He believes discounts will be aggressive, ranging from 10% to as high as 40% depending on category. “Some products that are sitting on huge inventory” could see 30 to 40% off, Pathak said. The new launches may come with “bundling offers or the credit card offers or the other offers in play as well.”
Pathak also pointed out that offline retail is back in focus. “The interesting thing what we are also seeing this time… is the mainline retailers are also getting a very equal consideration or attention from a lot of these OEMs,” he said.
Also read: TVs, ACs and other appliances may get cheaper after GST reduction: Check full list
Extra spending power for consumers
The GST savings also give shoppers more room to spend. “The recent GST reforms adds to the disposal income of consumers meaning they have now more to shop or save,” said Faisal Kawoosa, Chief Analyst and Founder of Techarc. He explained that even though smartphones don’t get a tax cut, “the additional disposable income should motivate consumers to benefit from the discounts.”
According to Kawoosa, the industry could see 2 to 3% higher growth for value this season, and compared to last year, sales might climb by around 5%. At the same time, he warned that “consumers will expect more benefits, one coming from GST and another the routine festive period offerings. It may not be possible for brands to meet this level of expectations.”
Adding to this perspective, CP Khandelwal, CEO of PSAV (Official partner for Honor smartphones in India), said: “A GST cut certainly enhances the festive shopping appeal, but what truly matters is how brands and platforms translate this into sustained customer value. At PSAV Global with Honor, our focus goes beyond attractive pricing, we emphasise durability, performance, and dependable after-sales support that foster long-term trust.” “While GST cuts add welcome momentum, it is timing, service, and product reliability that ultimately drive lasting growth.”
Smartphones in focus
While smartphones are not part of the GST rate cut, heavy discounts are expected. Abhilash Kumar, Senior Industry Analyst at TechInsights, said, “We anticipate potential discounts on smartphones during the forthcoming festive season… based on factors, including the aggressive pursuit of Gross Merchandise Value (GMV) by Amazon and Flipkart, promotional support from financial institutions, and smartphone brand strategies to liquidate existing inventory.”
He also pointed to Apple and Samsung as key players this season. “Given the forthcoming release of the iPhone 17 series… we anticipate robust sales for the preceding iPhone 16 model,” he said. “Furthermore, Samsung, as the title sponsor of Flipkart’s Big Billion Days and also powering Amazon’s Great Indian Festival, is believed to achieve significant sales volumes.”
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Ayushi Jain
Ayushi works as Chief Copy Editor at Digit, covering everything from breaking tech news to in-depth smartphone reviews. Prior to Digit, she was part of the editorial team at IANS. View Full Profile
