August 24, 2025

Get ready for a big GST rollercoaster! India is planning to slash GST rates on small cars, two-wheelers, TVs, ACs, and dishwashers. Sounds great, right? That’s what shoppers believe, but there’s a twist. Many buyers are holding back their purchases, hoping prices will drop soon. This waiting game has slowed down festive season sales, from Ganesh Chaturthi to Onam. Car dealers and shops selling consumer goods are biting their nails. Usually, this festive period is a blockbuster for them, leading up to Dussehra and Diwali. But now, sales are stuck in slow motion. "We are worried as the festive opening is normally a bumper period," said car and consumer goods companies. Electronics stores are buzzing with customer questions: "When will TVs and ACs get cheaper?" Even auto dealers feel the heat. People are cancelling car bookings, especially in Kerala and Maharashtra. Dealers are stuck with large stocks, fearing bank penalties if vehicles don’t sell in 60 days. Saharsh Damani, CEO of the Federation of Automotive Dealers Association, revealed they’ve asked top ministers Piyush Goyal and HD Kumaraswamy for help to ease this pressure. So, what might get cheaper? The government is mulling a GST cut for small cars and two-wheelers from 28% to 18%. Big TVs, ACs, and dishwashers could also see similar tax cuts. But it’s all waiting on the GST Council’s final call. While consumers get ready to save money, companies are stuck in limbo. Big brands like LG, Samsung, and Sony see lower sales as customers postpone purchases. Here’s a spicy twist for the electric vehicle (EV) world! Currently, EVs enjoy a comfy 5% GST rate, making them cheaper than petrol and diesel cars taxed at 28%. If small petrol and diesel cars move to 18%, they might competitively edge closer to EVs. Analysts warn this could reduce EVs’ attractive cost advantage, especially in small hatchbacks. HSBC Research even says EV makers could lose steam if petrol car prices fall. EV sales did zoom up by 93% in July, thanks to Tata Motors, but EVs still hold a small 4.5% share of all car sales. The GST rate cut decision could shape the future battle between shiny electric rides and traditional petrol vehicles. The clock is ticking as the GST Council prepares to make its call. Will shoppers celebrate with slashed prices this festive season or keep waiting in the wings? One thing is sure — the tax cut drama will change India’s shopping and driving roads soon!

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Tags: Gst rate cut, Festive season sales, Electric vehicles, Auto dealers, Consumer electronics, India economy,