Amazon’s Great Indian Festival to hit new highs with GST-driven growth

Amazon is gearing up for its biggest Great Indian Festival yet, boosted further by the recent GST reforms that are reshaping the consumer landscape in India. Saurabh Srivastava, VP, Categories, Amazon India said the combination of reduced GST rates and regulatory simplification is driving more sellers and customers into the fold, setting the stage for a landmark festive season.

“We have about 1.7 million sellers who really wait for this festival because it means a big positive impact on their business,” Singh said. “Every year, we look at how to make this bigger and better for customers, our sellers, and ecosystem partners. This year was going to be bigger anyway, but with the GST changes, it will be like a double dhamaka.”

Here’s the thing: the GST rate reductions don’t just lower prices for consumers. They will also make e-commerce participation far easier for small sellers, particularly in tier 2 and tier 3 cities. Previously, sellers had to set up physical offices in multiple states to sell across India—a costly and cumbersome requirement. The government has now removed that, enabling local sellers to offer products nationwide without needing a physical presence in every state.

“This has democratised participation in digital commerce,” Singh explained. “Sellers will now sell across India, customers will get faster delivery because the product is stocked regionally, and sellers will reduce working capital needs and shipping costs. It’s a triple win.”

Singh laid out a clear expectation of demand patterns for the festival, which starts on September 22 for Prime members and September 23 for others. Categories with significant GST cuts—like large TVs, air conditioners, fashion, and everyday essentials—are likely to see sharp spikes in demand.

“Generally, customers start by shopping for high-value products like smartphones, washing machines, refrigerators, and laptops early in the event,” he said. “As the festival progresses, they shift towards fashion, kitchen appliances, dry fruits, and decorative items.”

What stands out this year is the lasting impact these reforms are expected to have on customer adoption. Singh pointed to last year’s performance as a benchmark: during the Great Indian Festival, Amazon clocked 140 crore customer visits. This year, that figure is expected to be even higher.

The confidence stems from the recent Prime Day, which was Amazon’s biggest ever. About 70% of new Prime sign-ups came from Tier 2 and Tier 3 cities, a clear indication of how far beyond metro markets Amazon’s reach now extends. Peak orders during Prime Day hit 18,000 per minute, up 50% from the previous year.

The recent ₹2,000 crore investment in building new capacity and technology “ will help to serve this unprecedented demand,” Singh said. “Because of the GST, we expect this festive season to be even bigger.”