Big Billion dilemma: Flipkart, Amazon hold back festive sales plans as GST rejig looms

Top e-commerce firms Flipkart and Amazon are delaying finalising their flagship festive sales as they await clarity from the Goods and Services Tax (GST) Council, which is set to meet on September 3–4 to discuss a major rate overhaul, reported Moneycontrol, citing people familiar with the matter.

The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman and including state finance ministers, is expected to deliberate on recommendations by groups of ministers that favour moving from the current four-rate structure of 5%, 12%, 18% and 28% to a two-slab regime of 5% and 18%.

A special 40% rate may apply to ultra-luxury cars and so-called “sin” goods. The Group of Ministers (GoM) comprising state ministers met last week and, in principle, agreed to the Centre's proposal for a two-slab GST.

At stake is the 28% GST on big-ticket items such as appliances and furniture, categories that are crucial during the festive shopping season.

Flipkart’s Big Billion Days and Amazon’s Great Indian Festival, typically launched in mid-September, contribute nearly a quarter of annual revenues, according to the report.

A large e-commerce platform has reportedly been in active discussions with policymakers to seek early clarity on whether changes will be implemented before the festive season.

Large appliances account for roughly 10% of festive sale volumes, making them a critical driver of sales. Any cut in GST could lift consumer spending in these categories, while uncertainty risks depressing demand.

“Consumers are delaying purchases as they expect a GST cut on big-ticket items,” Moneycontrol quoted Satish Meena, founder of research firm Datum Intelligence, as saying.

The Central Board of Indirect Taxes and Customs (CBIC) has cautioned against speculation.

“It is kindly requested that speculation on GST rates may be avoided. Decisions in this regard are taken collectively by the GST Council which comprises of the Centre and States,” CBIC said in a post on social media platform X.

“Premature speculation gives rise to baseless rumours and may cause volatility in the markets,” it added, urging stakeholders to await official announcements after the September 3–4 meeting.