For most Indian shops the stretch from Navratri to Diwali brings in more sales than any other part of the year. It is also when shops give away margin they did not need to, run out of the items everyone asks for, and pile up the ones nobody wants. A festival sale works when it is planned: the right items, discounts you can afford, GST worked out correctly, and customers who actually hear about it.
Quick answer
Choose items to push and items to clear, work out the extra units you must sell before you discount, show every discount on the bill and charge GST on the discounted price, stock up on fast movers early, tell customers through permitted channels, and review the numbers after the festival.
1. Decide what the sale is for
A festival sale usually has two jobs, and each needs different items:
- Bring people in: items with strong festive demand, such as gift sets, dry fruits, cookware, new clothes or lights. Offer modest deals here; people are buying anyway.
- Clear old stock: slow-moving items where cash back in the drawer is worth more than the margin. See our guide on reducing dead stock.
Use last year's festival sales if you have them. The items that sold out then will sell out again.
2. Check the margin before you discount
A discount comes straight out of your margin, not out of the price. Take a steel cookware set at a Nagpur kitchenware shop:
| Normal price | 10% festival off | |
|---|---|---|
| Selling price before GST | ₹1,000 | ₹900 |
| GST at 18% | ₹180 | ₹162 |
| Customer pays | ₹1,180 | ₹1,062 |
| Your cost | ₹700 | ₹700 |
| Margin per set | ₹300 | ₹200 |
A 10% discount cuts the margin by a third. To earn the same ₹3,000 you made on 10 sets, you now have to sell 15. If you do not expect 50% more sales, offer a smaller discount, a gift with purchase, or a combo instead.
3. Get GST right on festival offers
| Offer | How GST works |
|---|---|
| Flat or % discount at the counter | Show the discount on the bill; GST is charged on the discounted price |
| Buy one get one | Not a free supply (CBIC Circular 92/11/2019); GST on the price collected, ITC stays |
| Gift hamper of mixed items at one price | Usually a mixed supply, taxed at the highest rate among the items |
| Gifts given free, not tied to a purchase | Input tax credit on those gifts is not available |
Keep the discount visible as its own line on the invoice rather than quietly changing the price. It makes the tax clear and helps if a customer returns the item. Our GST invoice format guide covers what a bill must show.
4. Stock up and label early
Suppliers get busy and prices firm up as the festival gets closer. Place orders for your festival items early, using a purchase order so partial deliveries do not get missed. Set low-stock alerts on bestsellers, and print fresh price and barcode labels for combos and offer items before the rush, not during it.
5. Tell customers the right way
- SMS: promotional SMS must go through a provider on the TRAI DLT platform, with your business, header and message template registered. Delivery is only between 10 am and 9 pm, and customers who blocked promotions will not get them.
- WhatsApp: send offers only to customers who agreed to hear from you, and keep them short. One well-timed message beats five.
- In the shop: a clear board at the entrance and offer tags on the shelf still do most of the work.
Time it well: a first message about a week before, and a reminder a day or two before the main festival day.
6. Get the counter ready for the rush
Make sure every cashier has their own login, UPI QR codes are on every counter, and split payments are quick. Decide your exchange policy for festival purchases in advance and print it on the bill. See our guides on multiple cashier logins, accepting UPI payments and returns and refunds.
7. Review after the festival
Within a week, compare sales, margin and leftover stock with last year. Which offers brought extra customers, and which only gave away margin on sales you would have made anyway? Our profit and loss guide shows how to read the numbers.
How RichPOS helps
RichPOS SMS, email & WhatsApp sends bulk promotional messages to your customer list, with delivery status for each message, and delivers bills on WhatsApp. Inventory & barcode gives low-stock alerts and bulk barcode label printing. Billing & POS handles barcode checkout, UPI and split payments and sales returns that correct stock, and GST and profit reports show how the festival actually went.
Frequently asked questions
- Do I charge GST on the price before or after the festival discount?
- On the price after the discount, as long as the discount is given at the time of sale and shown on the bill. The discounted amount is not part of the taxable value, so GST is worked out on what the customer actually pays before tax.
- Is the free item in a buy-one-get-one offer a free supply under GST?
- No. CBIC Circular 92/11/2019-GST treats buy-one-get-one as one price paid for both items, not a free supply. GST is charged on the price collected and input tax credit on both items stays available. Confirm with your CA for your offer.
- What GST rate applies to a festival gift hamper?
- A hamper of different items sold for one price, such as sweets, dry fruits and a steel bowl, is usually a mixed supply. It is taxed at the rate of the item with the highest GST rate in the hamper. Selling items separately at their own rates avoids this.
- Can I send festival offer SMS to all my customers?
- Promotional SMS in India must go through a provider registered on the TRAI DLT platform, with your business, sender header and message template registered. Promotional messages can only be delivered between 10 am and 9 pm and do not reach customers who have blocked promotions. For WhatsApp, send offers only to customers who agreed to receive them.
Bottom line: a festival sale should add profit, not just footfall. Know your margin before discounting, keep GST on offers clean, stock up early and message customers only through permitted channels. RichPOS gives you GST billing, stock alerts and customer messaging from ₹199/month, with a 30-day free trial. See pricing or call +91 90333 31255.
General guidance for Indian retailers as of 2026; GST and TRAI rules can change, so confirm how they apply to your offers with your CA.
