Save on Festive Buys: Shop After September 22

The sweeping reforms under Goods and Services Tax (GST), dubbed GST 2.0, are set to boost consumer spending across categories, with lower rates on mass-consumption items. The revised indirect tax structure

takes effect from September 22.

The large rate cuts across categories are luring customers to begin their shopping spree now to enjoy the benefits.

Experts, however, are recommending shoppers wait until September 22 to make high-ticket purchases and discretionary item purchases, according to a report of CNBC TV-18.

In a sweeping reform, the GST Council, led by Finance Minister Nirmala Sitharaman, has approved a sharp overhaul of the Goods and Services Tax (GST) structure. Effective September 22, the system will be simplified into just two main slabs of 5% and 18%, replacing the current 12% and 28% rates, with a special 40% slab for luxury and sin goods. Billed as a “historic Diwali gift” for citizens and businesses, the reforms aim to lower the cost of living, boost consumption, and spur economic activity.

Harpreet Singh, Partner at Deloitte India said that large television sets, projectors, washing machines, dishwashers, smaller cars and bikes will see a substantial rate decrease post September 22.

He further said that it’s better to postpone grocery shopping until then for household essentials like shampoo, toothpaste, ghee and butter.
Dinkar Sharma, Company Secretary and Partner at law firm Jotwani Associates, as quoted by CNBC TV-18, said shoppers would save substantial amount of money by holding off their big-ticket purchases. He, however, warned that the GST rate cut might not be universal or immediate for all segments.

According to Dinkar Sharma, retailers and suppliers are still carrying stock purchased under the old tax regime, which means these goods won’t automatically qualify for the reduced rates.

“Some may absorb the impact to remain competitive, but others could delay passing on the benefit until old stock clears. Hence, if you’re purchasing items that are already on significant discount or clearance, the post-GST 2.0 prices may not always beat current offers,” Sharma notes.