GST rate cut draws shoppers to electronics stores, sales stir slowly

However, sales are yet to see a significant pick-up

Electronics, Tablet, Laptop — (Photo: Shutterstock)

BS Reporters Kolkata/Bengaluru/New Delhi/ Mumbai

6 min read Last Updated : Sep 23 2025 | 8:59 AM IST

Consumer durable stores across the country witnessed a noticeable uptick in footfall on Monday as the goods and services tax (GST) on television sets, air-conditioners, and dishwashers dropped from 28 per cent to 18 per cent. But despite the buzz, retailers say the surge in walk-ins has not yet translated into significant sales.

In Kolkata, electronics stores were prepared well in advance for the revised rates, with fresh stickers placed alongside old ones to highlight the 10 per cent price cut. From morning, customers were walking in to enquire, and the optimism was evident.

Sales had fallen nearly 50 per cent between September 1 and 20 — the crucial pre-festival period in East India — because buyers were holding back for the GST cut, said Pulkit Baid, director of Great Eastern Retail. “But sales have picked up today and should improve over the next month in the run-up to Diwali.”

He admitted that the switch posed challenges: Managing the rush, processing orders, updating systems — everything needs to be recalibrated.

In West Bengal, the start of Durga Puja gave an extra push. Khushboo Khosla, sales & marketing director of Khosla Electronics, a lot of advance bookings took place on Sunday, as it was Mahalaya — an auspicious day in West Bengal. Billing began on Monday, with customers who had booked in advance making payments and collecting their products. “GST reduction just ahead of Durga Puja has given the market a significant boost,” she added.

Bengaluru told a similar story. At a Croma store, the manager sounded cautiously upbeat: “It’s too early to tell what impact GST and the festival season will have. Last year we did sales worth about ₹1.5 crore. We’re optimistic that this year will be good.”

AC sales shall remain subdued, he noted, as “it’s not the season”, but television sets and soundbars are in demand.

Besides GST relief, the store is giving festival offers like cashback up to ₹10,000, and exchange bonus.

“We are aggressively comparing our prices with Flipkart’s and Amazon’s prices to ensure we offer the best deal or maybe a little extra,” he said.

Shoppers had clearly been waiting. The past 10 days were slow because people wanted to know when the new GST rates would kick in, said a manager at Reliance Digital. “Prices are about 10 per cent lower on ACs, TVs and dishwashers. A ₹15,000 item is down by around ₹1,000. Brands have reduced prices centrally, so these cuts are visible across the market.”

He expected sales to rise by about 20 per cent this week once cashback offers start rolling out.

Large chains, according to a GST official, were quick to pass on the benefit. Some smaller shopkeepers, however, were still selling at the old rates, “probably out of lack of awareness”, the official said. “We will address the issue. Overall, there was an excitement among consumers on the first day of GST 2.0,” the official said.

In Delhi-NCR, electronics stores were buzzing with activity as customers came in enquiring about new prices of air conditioners and TVs. However, while queries were high, sales were slow to follow. “The Navratri festival has just started and it will take time for people to come out and actually start buying. We are hopeful of a good season after a lull almost the entire last month on account of shraadh and people waiting for new rates,” said Manpreet Singh, branch manager at Electronics Paradise in Lajpat Nagar.

The selling prices of some white goods have come down by almost ₹4,000–₹5,000. On Monday afternoon, Singh sold his first air conditioner at the new effective rates at ₹30,600 down from ₹34,000 earlier.

At the adjacent Vijay Sales, queries for TV panels were up but sales were damp. “It’s a Monday afternoon and we expect the momentum to start picking up only in a day or two,” said a sales manager at the store.

At the Sony store, where prices of TVs have gone down by almost 8 per cent, the queries were strong and a few sales had taken place since Monday morning. Sony India managing director, Sunil Nayyar, too, was expected at the Lajpat Nagar store to take stock of the consumer sentiment on the first day of festivities and new GST rates being effective.

At a Croma store in Connaught Place, the picture was not much different. While walk-ins were high, actual sales were yet to happen. “E-commerce sales are live too, and people are comparing prices before taking a final call,” said a sales executive at the store. “Walk-ins are also high due to the new iPhone. We have started seeing multiple queries for TVs, air conditioners, and even dishwashers, and expect business to start picking up in a day or two.”

In New Delhi’s malls, staff said they had arrived early to update billing systems with the new GST rates. “Inquiries are good, but sales will take a few days to show up,” said a dealer at a large consumer electronics showroom. “We have updated our systems to reflect the new GST rates, but it’s too early to comment on the sales impact.”

Some showrooms displayed GST discount banners, while others refrained.

“The GST rate cut has given a clear boost to consumer confidence. Footfall in retail outlets, particularly for white goods, has visibly increased, and several businesses are actively informing customers that the tax benefit is being passed on through reduced prices. This transparency not only builds trust between consumers and retailers but also reinforces the positive impact of rationalisation on demand and economic activity,” said Abhishek Rastogi, founder, Rastogi Chambers.

In Mumbai, however, stores wore a deserted look, largely because of it being a working day, according to store managers at two electronic chains. An employee at one store said that the drop in GST rates had been passed on from Monday but customers would start coming in only in the evening after work hours. Another store manager also said that enquiries had started to come in. “We will see more customers coming into the store in the evening. We have passed on the GST rate cut and demand will pick-up in the coming days.”

(Inputs from Ishita Ayan Dutt, Aneeka Chatterjee, Monika Yadav, Akshara Srivastava & Sharleen D’Souza)