Spurred by the recent GST rate cuts announced by the Government, the festive season sale has begun for premium garment retailers and e-commerce platforms. Two weeks ahead of Navratri, traditionally seen as the start of the festive shopping season, several retailers have rolled out discounts of up to 50% online.
“The GST rate cut will boost consumption in the apparel and textile sector. It is a positive flip for value and mid-retailers from an amplification of consumption perspective,” said Neeraj Nagpal, Chief Business Officer–Apparel and Retail, Raymond Lifestyle Ltd. He further added that Raymond Apparel Brands has recorded double-digit growth in combined retail and online sales compared to last year’s festive season.
Amazon, a massive online retailer, is also taking advantage of the trend. Leading brands including Libas, BIBA, Levi’s, US Polo Association, GAP, Lavie, Adidas, Titan, Mokobara, GIVA, Safari, Lakme, Michael Kors and Swarovski are all offering up to 80% discount right now.
“We saw a record 140 crore customer visits during the last Amazon Great Indian Festival, with over 85% coming from non-metro cities,” stated Siddharth Bhagat, Director of Amazon Fashion and Beauty. With orders reaching a peak of more than 18,000 per minute and 70% of new Prime sign-ups coming from Tier-2 and Tier-3 cities, Prime Day 2025 furthered this trend.
Clothing up to Rs. 2,500 (US $ 28) will now be subject to 5% GST under the updated GST slabs, while products over that amount will now be subject to 18% tax, up from the previous 12%.
The industry, which was struggling with inverted duty structures, has benefited from the rationalisation. “Companies are recalibrating their pricing strategies to balance the impact of GST rate changes on their profits against the discounts they can extend in the domestic market to boost consumption,” stated Sagar Shah, a Tax and Regulatory Expert at EY India.
The tax impact on finished items and on raw materials or packaging purchased at the higher pre-rationalisation rate are two elements that enterprises must take into account when rethinking prices, he noted, particularly for older stocks.
