A year after GST cuts, India is buying bigger
India's GST cuts, implemented on September 22, 2025, have not only lowered prices but have also altered consumer purchasing habits, according to a report released a year later. While gross GST collections have remained above Rs 1.9 lakh crore, rising by 14.8% year-on-year in August 2026, the impact on consumer behavior has been more nuanced.
Higher input costs and geopolitical uncertainty have tempered the consumption recovery. However, the real change lies in what Indians are choosing to buy. Two-wheeler users are moving up to cars, and television buyers are opting for larger screens and better technology. Consumer-goods companies have seen an initial improvement in volumes, indicating a shift in the composition of consumption.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
