Amazon, Flipkart Give ₹300 Cr GST Rate Cut Benefit to Customers

GST Benefits on E-Commerce: During festive sale days, Amazon and Flipkart, India’s two largest e-commerce sites, together gave customers nearly Rs 300 crore in benefits from the GST rate cut. In a statement, both businesses informed the media that they had taken a number of steps to guarantee that “GST reductions are passed on to customers” after September 22, the day the new GST rates went into effect.

GST Benefits on Amazon & Flipkart:

According to Flipkart officials, Flipkart has already authorized the sellers to pass over 200 crore rupees of GST benefits to their customers during this festive sale. Following this, Amazon said that during the Great Indian Festival, they have authorized around 100 crore rupees in GST Benefits to their customers in most categories.

The new goods and services tax regime, which took effect on September 22, replaced the former multi-tier structure with two primary slabs of 5% and 18%. This reform, the largest in indirect taxation, aims to reduce the cost of over 300 everyday items and ease the tax burden on average consumers. Flipkart launched ‘GST Bachat Utsav’, a dedicated storefront highlighting GST reform-linked savings. The e-commerce giant actively collaborates with its sellers to ensure the GST reductions directly translate into lower consumer prices.

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Heavy Traffic During Festival Sales:

Amazon’s Great Indian Festival (GIF) and Flipkart’s Big Billion Days (TBBD) drew record traffic and strong demand. Gen Z consumers, high-value sales, and GST reductions drove what many expect to be the largest festive season in the industry’s history.

Market intelligence firm Datum Intelligence reported that online festive season sales hit ₹60,700 crore in the first week, a 29% jump year-over-year. This marked the biggest start ever for India’s digital retail sector. With over half the target already achieved in the first week, Datum Intelligence predicts this year’s festive sales will cross ₹1.2 lakh crore, compared to ₹1 lakh crore in 2023 and ₹81,000 crore in 2022.