Online Shoppers Press Pause Button Ahead of GST Changes; Festivities to Boost Sales: Analysts
The planned GST changes have prompted some e-shoppers to postpone purchase decisions in hopes of lower taxes on certain products like consumer goods and electronics, say analysts, while emphasising that the blip is only temporary and sales are set to rebound as clarity improves and festive fervour takes hold.
Goods and services are currently charged under a four-tier system with rates ranging from 5% to 28%.
GST reform, proposed by the Centre, says that most goods will be charged at either 5% or 18%. Durables such as washing machines, air conditioners and refrigerators will be among the goods charged lower rates under the new GST regime.
The GST Council, chaired by Union Finance Minister and comprising ministers from all states and UTs, will meet on September 3 and 4 to discuss the reform.
As the industry prepares for the rollout of GST 2.0, the e-commerce sector is witnessing a noticeable shift in consumer behaviour, particularly around high-value categories such as electronics and appliances, said Naveen Malpani, Partner and Consumer & Retail Industry Leader, Grant Thornton Bharat.
"The anticipation of revised tax slabs moving from the current four-tier structure to a simplified two-rate system of 5% and 18%, has led to a 'wait-and-watch' sentiment among buyers.
