The festive cheer in Bengaluru has been somewhat dimmed this Deepavali season, as high GST rates put a brake on traditional shopping sprees. According to retailers across the city, sales of ethnic wear have taken a significant hit, dropping by approximately 30% compared to previous years.
The Tax Burden on Tradition
The primary culprit appears to be the 12% Goods and Services Tax applied to readymade garments priced above ₹1,000. This taxation has made traditional outfits considerably more expensive, forcing many budget-conscious shoppers to either scale back their purchases or opt for more affordable alternatives.
Retailers Feel the Pinch
Store owners across Bengaluru's bustling shopping districts report empty aisles and quiet showrooms during what should be their busiest season. "Despite offering attractive discounts and festive promotions, customers are hesitating to make purchases, especially for higher-priced items," shared one disappointed retailer.
The sales slump is particularly noticeable in:
- Silk sarees and designer ethnic wear
- Elaborate lehengas and sherwanis
- Premium Kurtas and traditional outfits
- Festive collections from established brands
Consumer Sentiment Turns Cautious
Shoppers who would typically splurge on new traditional attire for Deepavali celebrations are now thinking twice. Many are either re-wearing outfits from previous years or opting for mix-and-match options from their existing wardrobe.
"When a simple silk saree costs upwards of ₹5,000, the additional GST makes a significant difference to our festival budget," explained one homemaker shopping in Commercial Street.
Broader Economic Impact
The downturn in ethnic wear sales has ripple effects throughout the local economy, affecting:
- Small and medium-sized textile retailers
- Local artisans and craftspeople
- Shopping mall footfalls and associated businesses
- Seasonal employment in the retail sector
As Bengaluru navigates this festive season, the conversation around GST rates and their impact on traditional industries continues to gain momentum among business owners and consumers alike.
