India’s implementation of the upgraded Goods & Services Tax regime (GST 2.0) has had immediate and tangible effects on consumer behavior, especially across high-ticket items and the auto sector. With the new tax slabs coming into effect on September 22, following recent reductions in GST rates for several goods, there was a pronounced rush among consumers to make purchases prior to the changes, and an even sharper pickup once the new rates were live. Car showrooms across cities like Kolkata reported a substantial rise in bookings; auto makers passed on GST-driven price cuts of up to ₹1.2 lakh on popular models such as Honda Amaze, City, and Elevate. On the first day of Navratri under the new regime, brands like Maruti Suzuki, Tata Motors, and Hyundai saw record sales—boosted not only by lower tax burdens but also by pent-up demand. Dealers and retailers meanwhile scrambled to clear older inventory ahead of rate changes, and online platforms saw spikes in orders for electronics, goods, and appliances. The reforms are being viewed as a major lever to stimulate consumption around the festive season, offset some inflationary pressures, and potentially improve momentum in India’s private sector.
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