Bengaluru, September 9, 2025: Flipkart Group CEO Kalyan Krishnamurthy has described the recent Goods and Services Tax (GST) revisions as a “critical enabler of consumption and inclusion,” positioning the changes as a key driver of purchasing power in India. His remarks came at an internal employee event this week, as the e-commerce major readies itself for its annual flagship sale, The Big Billion Days 2025.
GST background and new slabs
The GST Council, in its meeting last week, approved a revised two-tier structure with slabs of 5% and 18%, along with a special rate of 40% for tobacco, luxury goods, and related categories. The new tax structure, effective from September 22, 2025, replaces the earlier four-slab system of 5%, 12%, 18%, and 28%.
Flipkart has already implemented compliance mechanisms to align with the reforms. The company announced that its platform would auto-update GST slabs on products based on HSN codes, ensuring sellers remain compliant with directives. This step is expected to simplify taxation, improve price transparency, and enable sharper pricing strategies for consumers.
CEO remarks on GST’s role in boosting consumption
Krishnamurthy underlined that the revised GST slabs would significantly boost consumption in India by lowering costs for consumers and strengthening seller confidence.
He added that Flipkart has seen four times growth in units sold compared with last year, supported by a 1.3x increase in product selection. Sources present at the event said Krishnamurthy highlighted record-high seller confidence, with Flipkart achieving its highest-ever Net Promoter Score (NPS).
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Implications for sellers and the wider market
Analysts note that GST reforms could have a direct impact on festive season spending, particularly in the e-commerce sector. For platforms such as Flipkart, streamlined compliance and lower tax burdens are expected to create pricing advantages that attract more customers.
Startups and small sellers, who previously faced complex compliance structures, may now experience reduced administrative strain, enabling them to expand into new categories and geographies.
Expert views on compliance and industry impact
Tax consultants indicate that a simplified GST framework will likely improve compliance levels while reducing errors. Flipkart’s adoption of HSN-based automation is viewed as a best practice for e-commerce platforms aiming to support sellers.
Market experts also expect that seller confidence and sharper pricing will boost The Big Billion Days 2025, making it one of the most closely watched sales events of the year.
Looking ahead to the festive season
With the revised tax slabs set to roll out just weeks before the sale, Flipkart is positioned to leverage regulatory reforms alongside strong consumer demand. The festive season will serve as a critical test for how GST-driven consumption patterns translate into growth for India’s digital retail ecosystem in 2025.
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