GST cuts passed on to consumers by e-commerce companies spurs consumption

Union Commerce and Industry Minister Piyush Goyal said that nearly all e-commerce companies have passed on the benefit of recent GST rate cuts to consumers and, in many cases, has also extended additional Navratri discounts. India's two major e-commerce platforms--Amazon and Flipkart, have reportedly passed on the GST rate-cut benefits worth over Rs 300 crore to customers in their respective early "festive sale" days, both the companies said in a statement earlier this month.

“Almost all e-commerce companies passed GST cuts and also gave Navratri offers over and above that, as per what we have monitored,” Goyal said.

Goyal added that consumer enthusiasm during the festive period reflects a stronger ‘Swadeshi’ sentiment.

“Everyday items like cosmetics, beauty products, watches, pens, paper — there is nothing that hasn’t been made in a way to boost enthusiasm and pride in the country, and encourage people to buy local. I am fully confident that the spirit created from Navratri to the New Year has reached every home, and today, every person feels a stronger sense of ‘Swadeshi’,” he said.

Finance Minister Nirmala Sitharaman, meanwhile said the government is witnessing clear signs of improving consumption trends following the rollout of GST 2.0, which she described as one of the key engines for growth.