By Bl Mumbai Bureau

Copyright thehindubusinessline

The reduction in GST rates on several household items of mass consumption has engendered positive consumer sentiments and retailers and consumer goods companies are anticipating double-digit growth this festive season.

Companies pointed out that with the implementation of GST 2.0, consumers are approaching retailers and showrooms across the country, including in metro, tier 2, and tier 3 markets.

Early stage

“I expect that with the GST change, it will boost the business here during the festival season. So it’s very early to say how much it will impact and because it’s still a very early stage of what we have seen so far. This quarter is always one of the most important quarters for us, not only for us but for the industry during this festival peak. We are always planning with double-digit growth. The GST will definitely benefit or will help us to achieve this kind of growth,” Lars Nielsen, CFO, United Colours of Benetton, India, told businessline.

Retailer association stated that while GST reforms will increase consumer sentiments, garments priced above ₹2,500 continue to be under high GST. The association plans to approach the Centre to reduce GST on garments above ₹2,500.

“The one place where there is a bit of a blip is garments above ₹2,500. There could be a few garments particularly for women where purchases are made. The prices in the segment have gone up from 12 per cent to 18 per cent. Companies are providing discounts, but it’s not a long-term solution. Eventually whatever the price is the consumers will have to pay 18 per cent as long as it’s above ₹2,500,” Kumar Rajagopalan, CEO, Retailers Association of India, told businessline

Published on September 24, 2025