The Union commerce ministry has asked physical retail chains to prominently showcase discounts arising from the upcoming GST rate rationalisation, effective September 22.

In a directive to the Retailers Association of India, the Department for Promotion of Industry and Internal Trade (DPIIT) said retailers should reflect the GST cut as a “GST discount” on receipts and bills, with greater visibility for high-impact products.

“The ministry has urged retailers to use posters, flyers, and advertisements — across print, television, digital, and their own store networks — to convey the benefit to buyers,” the directive said.

The DPIIT has further suggested that retailers monitor and highlight sales data during the festive season to showcase the impact of the tax change.

Officials believe the move will not only encourage footfalls but also ensure the benefit of lower taxes is transparently passed on to consumers.

The GST overhaul will see the four-tier structure streamlined into two slabs — 5 per cent for essential and commonly used goods and 18 per cent for the rest — replacing the 12 per cent and 28 per cent categories. Nearly 400 products, from soaps, shampoos, and groceries to cars, tractors and air conditioners, will become cheaper.

Staple food items such as bread, milk and paneer will remain tax-free under the new system, aimed at boosting consumption and easing inflation pressures. The changes are expected to give a strong push to retail demand during the Navaratri-to-Diwali festive cycle.

“Despite prevailing headwinds, store managers indicated a demand uptick in July-August 2025, supported by a successful end of season sale, which eventually flattened. They anticipate a strong recovery starting late September 2025 to December 2025, driven by GST cuts, festivals and weddings,” said Motilal Oswal in a report on the retail sector trends.