GST 2.0 Set to Electrify India's E-Commerce Landscape

The forthcoming rollout of GST 2.0 is making waves in India's e-commerce arena as consumers delay purchases amid expectations of reduced prices under the new regime. Analysts report a temporary slowdown in sales, with electronics and appliances particularly affected, but a rally is anticipated with policy clarity.

India's GST Council will deliberate on the reform in early September, proposing a more streamlined system with rates of 5% and 18%. This simplification aims to prompt consumer purchases ahead of India's festive season, especially in high-value categories like air conditioners and refrigerators.

E-commerce giants are poised to capitalize on this shift, adjusting sales strategies for a potential surge in demand once the festive shopping period coincides with the new tax measures. Industry leaders remain optimistic about a robust recovery, driven by cultural buying patterns and revised tax incentives.

(With inputs from agencies.)