Varanasi's Diwali Boom: How GST Cuts Sparked Record Vehicle Sales

Local markets in Varanasi are witnessing huge crowds, and showroom managers say this season is unlike any before.

"It feels like the Mahakumbh of buyers," said Prabhakar, a local car sales manager.

"After the GST cut, we were expecting a boom, and that's exactly what's happening. Customers are excited, and bookings are pouring in," he told IANS.

Ravinder, a resident who just purchased a new car, shared excitement and said, "I'm very happy that we're getting vehicles at lower prices. It's a Diwali bonus for many families."

The boost in consumer sentiment comes after the launch of GST 2.0 on September 22, a major tax reform introduced by the Narendra Modi-led NDA government. The restructured system simplifies India's complex indirect tax regime, reducing four tax slabs to just two: 5 per cent and 18 per cent. This has made several goods and services, including vehicles, more affordable.

The new GST structure aims to increase affordability, drive consumption, and broaden the tax base. By reducing costs and encouraging compliance, it supports the manufacturing sector while easing the financial burden on households. Notably, exemptions in healthcare and insurance under the revised GST also offer added security to families.

Traders across Varanasi report an unexpected rise in footfall and early Diwali purchases, with many calling it one of the most active festive seasons in recent years.

Diwali celebrates the return of Lord Rama, Mata Sita, and Lakshman to Ayodhya, symbolising the triumph of good over evil. Homes are decorated with earthen lamps (diyas), rangoli, and lights. Devotees perform the Lakshmi and Ganesh Puja in the evening. Diwali also falls on October 20 this year.

- IANS