Festive Price Crash: What Gets Cheaper After GST Reform At Amazon Great Indian Festival 2025
Know how GST reforms slash prices on groceries, fashion, electronics and more; and how you could use that to your advantage at Amazon Great Indian Festival 2025. Save big this festive season!
GST reforms in 2025 make groceries, fashion, electronics and more cheaper than ever
The Amazon Great Indian Festival 2025 is arriving at a moment of change: the government has just approved sweeping reforms to the GST (Goods and Services Tax) regime, which come into force from September 22, 2025. These changes drastically simplify GST slabs, lower rates on essential goods, extend relief to categories beyond electronics, and aim to bolster consumer spending just in time for the festive season. For bargain hunters, this isn't just another sales event, it's a chance to buy what you need at noticeably lower-taxed prices. Amazon's festival deals layered on top of these tax cuts mean consumers may see deeper discounts across groceries, personal care, fashion, electronics, home goods and more.
Amazon Great Indian Festival 2025 combines tax cuts with mega discounts for double savings.
Photo Credit: Amazon
Imagine you're shopping for your Diwali list, everything from sweets to smartphones, kurta to kitchenware. Thanks to the GST overhaul, many of the items on that list will carry lighter tax burdens. Instead of having four slabs (5%, 12%, 18%, 28%), India is shifting to a simpler and leaner two-tier structure for most products: 5% and 18%, with a special 40% slab reserved for sin and luxury goods such as tobacco, very high-end luxury cars, etc.
Also Read: Amazon Great Indian Festival 2025: Here Is All You Need To Know
This matters for the Amazon Great Indian Festival in two ways:
- Tax savings become part of the base price. When GST goes down on a product, that dropping tax burden means Amazon (and its sellers) can start from a lower cost, even before their usual discounts or bank offers.
- Broader categories benefit. Whereas in earlier years you might have seen savings mostly in electronics or large appliances, now groceries, personal care, fashion, household basics, and even medical/health items are part of the GST “relief package.” That means more of your wishlist, regardless of what it is, can see meaningful reductions.
What Exactly Gets Cheaper?
Here are category-by-category changes under the new GST 2.0 reforms, with examples, and how they likely interact with Amazon's festival pricing
| Catgeory | What the GST Reform Does |
|---|---|
| Groceries and Packaged Food | Many food items have been moved from 12% or 18% slab down to 5% or zero/Nil tax; some essentials are now tax-free. |
| Personal Care and Household Goods | Items taxed previously at 12% or 18% have been reclassified to 5%. |
| Fashion and Footwear | GST cuts in many segments of apparel and footwear; improved slab alignment, especially for lower price items. For instance, products priced between certain thresholds may now attract lower GST. |
| Electronics and Appliances | High-taxed items like TVs, ACs, dishwashers, etc., are moving from the 28% slab to 18%. |
| Medicine, Health, Insurance | Life-saving drugs, medical devices, diagnostic kits, health insurance, etc., see GST lowered to 5% or nil; the reforms include many health-related goods moving to very low or no GST. |
| Home, Furniture, Building Materials | Certain construction materials, home furnishings, wooden articles, etc., have GST reduced (from 12% or 28% to 5% or 18%) |
| Vehicles / Automotive / Auto Components | Smaller two-wheelers, small cars, hybrid vehicles below set specifications get GST reduced (28% to 18%); auto components are reduced. |
| Services and Miscellaneous | GST on services like hotel stays (rooms below a tariff limit), gyms, salons, yoga, etc., is lowered (often from 18% to 5%). |
Numbers And Analogies To Understand the Scale
- Rate simplification: The four existing slabs (5%, 12%, 18%, 28%) are being compressed into two main slabs (5% and 18%) plus a 40% slab for luxury/sin goods.
- Magnitude of products affected: Many hundreds of goods (consumer essentials, home goods, electronics, health, etc.) will have lower GST, meaning this isn't niche relief but broad-based.
- Consumer impact: For many Indian households, groceries and daily-use items make up a large portion of monthly expenses. If these fall into lower GST rates (or zero), the savings over a shopping basket are non-trivial, 5-10% in many cases for those items, sometimes more when combined with Amazon offers.
Imagine GST is like a toll gate on every product. Earlier, many goods had to pass through a “high toll” gate (28% or 18%). With the reforms, many of those gates are replaced with more affordable “5% gates” or sometimes even no gate at all. Then Amazon arrives offering “half-price tickets” (i.e. discounts), bank offers, no-cost EMIs, so the user is getting through with minimal toll *and* paying less for the ticket.
What This Means For Amazon Great Indian Festival 2025
Everyday essentials like milk, bread, soaps and clothes now carry lower GST.
Photo Credit: Pexels
Amazon typically begins major deals in categories like electronics, fashion, home and kitchen, groceries, beauty, etc. With the GST rates already lowered, the “deal price + tax” tag will be more favourable. A product that was X price + 28% tax + discount might now be X price + 18% or 5% tax + the same or better discount.
Many items that people haven't considered previously (because the GST made them expensive) will fall into deals that become much more affordable: e.g. premium smartphones, home appliances, branded clothing, footwear, and personal care kits.
Sellers and brands are likely to pass on some of the benefit to consumers, especially during the festival period, where competition is high. Amazon's Festival tends to have bank offers, exchange bonuses, and extra coupons. Now on top of those, the GST reform effect adds another layer of savings.
For repeat or bulk purchases (groceries, hygiene, wellness, etc.), the GST reduction compounds the benefit. For first-time big purchases (TVs, ACs, car accessories etc.), the drop from 28% to 18% might tip the scales for consumers who were delaying purchase.
Possible Trade-Offs: What To Watch Out For
Not all goods are seeing GST cuts, luxury/sin goods move to a 40% slab. Items like gutka, cigarettes, premium liquor, very high-end luxury vehicles, etc., are excluded or may even cost more.
- Input tax credit (ITC) and classification complexities: Even with lower GST, sometimes the materials or inputs used in making the product are taxed higher, which may limit how much of the benefit is passed on. Some sectors have flagged this issue.
- Timing is key: Since new rates are effective September 22, what matters is whether Amazon listing and seller agreements reflect these new rates. For deals that begin before or straddle that date, there may be transitional pricing.
Why This Festive Season Could Be Exceptional
With the confluence of GST rationalisation and Amazon Great Indian Festival's discount machinery, this is likely to be more than a “sale”. It may well be a transformative year where people buy smarter across more categories: groceries, clothes, cosmetics, household items, health essentials; they all can become more affordable. For middle-income households planning festive spends, the difference could add up to thousands of rupees in savings.
If you are shopping with a list, map out what's “essential vs aspirational”, check the new GST rate on each, then see what Amazon's festival price plus bank offers or coupons tie up to. You may find that items you'd planned for next year you can buy now, and at a better value.
Amazon Great Indian Festival 2025 may turn out to be not just a shopping event, but a benchmark for what truly consumer-friendly tax policy can look like.
Frequently Asked Questions (FAQs)
1. What products are cheaper after GST reforms in 2025?
Groceries, personal care items, fashion, footwear, electronics, home appliances, medicines, and household goods have seen GST reductions, making them more affordable.
2. How do GST reforms affect Amazon Great Indian Festival 2025 prices?
Lower GST rates reduce the base price of products. When combined with Amazon's festive discounts, bank offers, and coupons, shoppers save much more across categories.
3. Are electronics and appliances included in the GST cuts?
Yes. Items like televisions, washing machines, refrigerators, and smartphones have seen GST drop from 28% to 18%, making them significantly cheaper this year.
4. Will groceries and daily essentials be cheaper on Amazon during the festival?
Yes. Staples like milk, bread, cereals, paneer, ghee, jams, sauces, and packaged food now fall under reduced or nil GST rates, cutting costs further during Amazon's festival sales.
5. Do GST reforms apply to fashion and footwear on Amazon?
Yes. Many mass-market apparel and footwear items fall under lower GST slabs, ensuring better value during the Great Indian Festival 2025 deals.
