E-commerce trends: Online buyers delay big-ticket purchases before GST 2.0, festive season seen as strong revival trigger

Online shoppers are holding back on big-ticket purchases ahead of the government’s planned overhaul of the goods and services tax (GST), with analysts flagging a temporary slowdown in demand across categories like electronics and appliances.

But industry leaders say the lull will be short-lived, with the festive season expected to drive a sharp revival once clarity emerges on the new tax slabs.Currently, goods and services are charged under a four-tier GST structure with rates of 5%, 12%, 18% and 28%. The proposed GST reform, to be taken up by the GST Council at its September 3–4 meeting, seeks to simplify this into a two-rate system of 5% and 18%. Under the new structure, consumer durables such as washing machines, refrigerators and air conditioners are likely to come under lower tax slabs, PTI reported.“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,” said Naveen Malpani, Partner and Consumer & Retail Industry Leader, Grant Thornton Bharat. He noted that internal estimates suggest a 25–30% impact on high-ticket segments like refrigerators and air conditioners if clarity is delayed.

“For instance, a Rs 1.2 lakh smartphone could become 10% cheaper post-reform, prompting buyers to delay their decisions,” he said.Shubham Nimkar, Research Analyst at Counterpoint Research, echoed the view, adding that retailers are managing elevated inventory levels while demand in electronics and appliances remains deferred. “E-commerce majors are already engaging with brands to prepare for a likely surge in demand during the latter phases of the festive season in October, once the revised GST rates are formalised,” Nimkar said.Platforms say they are recalibrating product positioning and pricing strategies in line with the expected changes. The festive season, which contributes nearly a quarter of annual revenues for online retailers, is expected to absorb the near-term shock.Shiprocket MD and CEO Saahil Goel said, “Festive shopping in India is both cultural and emotional. Families plan purchases around festivals, whether it is a new appliance, a gadget, or a home improvement.

This underlying demand remains intact, and if anything, GST rationalisation will only serve as an added incentive for consumers to buy more confidently.”Flipkart Group’s Chief Corporate Affairs Officer Rajneesh Kumar called the GST rationalisation a “structural reform that will give a strong boost to consumption, energise festive demand, and support India’s growth story”.Analysts project festive e-commerce sales to rise 15–20% once reforms are rolled out, with electronics and quick-commerce platforms set to lead the rebound. Malpani said the growth will be driven by improved affordability, simplified compliance, and greater consumer confidence.