GST rate cuts spark festive time rebound in demand

New Delhi: Festive season trends point to a rebound in demand, especially for consumer durables, as GST rate cuts have eased the tax burden for consumers, but its sustainment will depend on broader economic conditions and industry-specific dynamics in the quarters ahead, ICRA said on Monday.

Since its rollout in 2017, Goods and Services Tax (GST) has undergone several rate adjustments, culminating in a major restructuring in September 2025. The 'GST 2.0', rolled out from September 22, has brought in substantial rate cuts across a wide range of goods and services. ICRA said this overhaul aims to make consumer prices more affordable, reduce operational costs for businesses, and stimulate demand across sectors such as essentials, housing materials, automobiles, and services and improving affordability across key sectors. "Festive season trends and early indicators validate these benefits, pointing to a rebound in demand, especially for consumer durables.