Since its rollout in 2017, the Goods and Services Tax has undergone several adjustments, culminating in a major restructuring in September 2025. The GST 2.0 reforms, effective from September 22, delivered substantial rate cuts across a wide range of goods and services. Icra said the combination of rate reductions, pent-up demand and an early festive onset boosted sales in September–October, which is expected to support manufacturing output in October as well.
The agency noted that while GST rationalisation may continue to aid demand for everyday or small-ticket items beyond the festive period, the durability of demand for big-ticket products remains uncertain. The overhaul aims to make consumer prices more affordable, reduce business operating costs and stimulate demand across essentials, housing materials, automobiles and services, it added.