Mumbaikars are already reaping the benefits of the newly introduced GST 2.0 reforms as Navratri lights up the city and Diwali shopping begins in earnest. Retailers from Dadar’s electronics hubs to Andheri’s fashion arcades are witnessing a noticeable spike in consumer demand due to slashed GST rates on everyday essentials, white-line goods, and even entry-level vehicles.
Simplified GST Slabs Drive Savings
The revamped GST regime, implemented from September 22, has simplified the earlier complex four-rate structure into two primary slabs of 5% and 18%, with a new 40% bracket reserved for luxury and “sin” goods. Essential items like packaged food, personal care products, and some dairy goods have moved to lower tax slabs or been exempted altogether. Consumer durables such as TVs, ACs, and dishwashers, earlier taxed at 28%, are now mostly taxed at 18%, reducing prices substantially.
Electronics and Appliances See Surge in Demand
The rate cuts have proven especially effective during the festive season, boosting consumer sentiment and spending. Retail electronic chains like Croma, Reliance Retail, and Vijay Sales report heavy footfall and rising sales. Customers are upgrading appliances, with 32-inch TVs being replaced by 43-inch models and higher-end ACs seeing increased demand.
Fashion and Apparel Benefit from GST Cuts
Smaller retailers in Andheri and Dadar report steady demand, expecting a bigger boost closer to Diwali. Dadar Vyapari Sangh noted that the limit on ready-made apparel discounts should have been higher. Big fashion chains like Reliance Trends, Ajio, Trent, and Aditya Birla Fashion have recorded better footfall, offering discounted sales as GST on man-made fibres and ready-made apparel is now 5%.
Automobile Purchases Encouraged
The middle class is also benefiting from lower GST on scooters up to 350cc and small petrol cars up to 1,200cc, reduced from 28% to 18%. This not only lowers EMI costs but also encourages first-time buyers. Large cars remain at 40% GST, though the additional cess has been removed. Residents report being able to purchase higher-end models at previous budget prices.
Price Examples of Electronics
Hisense 43-Inch 4K Smart TV – Rs 23,967
Sony 32-Inch LED TV – Rs 25,800
LG 2-Ton Inverter Split AC – Rs 50,694
Daikin 1.5-Ton Inverter Split AC – Rs 32,490
LG 14-Place Dishwasher – Rs 49,587
BOSCH 14-Place Dishwasher – Rs 49,490
Price Examples of Vehicles
Maruti Suzuki Swift – Rs 5.78 lakhs
Tata Tigor – Rs 5.48 lakhs
Hyundai Grand i10 – Rs 5.47 lakhs
Honda Amaze – Rs 7.40 lakhs
Mahindra Thar – Rs 10.31 lakhs
