Even with GST, big fat Indian weddings keep getting bigger and better

Big, fat Indian weddings have become costlier since implementation of the Goods & Services Tax (GST). Tax on gold and diamond jewellery has increased from 1.6 percent to 3 percent and bookings for a 5-star hotel are now costlier by 28 percent.

Just when the wedding business was bouncing back from the glooms of the past season where big budget weddings took a hit due to demonetisation, GST came and made weddings at least 25 percent more expensive than what it was last year.

However, the celebrations have not taken a hit. GST or no GST, the show must go on is the mantra of every big ticket wedding happening in the country.

“Prices of wedding outfits have increased anywhere between 5 percent and 25 percent post GST, so customer budgets have increased accordingly but we haven’t experienced marked changes in the sales,” fashion designer Naina Jain said.

The highest spend by a single customer since GST at Jain’s has been Rs 15 lakhs. The trend indicated that wedding shopping hasn’t taken a hit when it comes to designer wear that has a 28 percent GST.

"No one is mindlessly spending though," said wedding planner Chitvan Jaipuria, director at CJ’s Events and Wedding adding that "money spent is well spent and most spent on bespoke services."

One of the engagement parties Jaipuria put together in Kolkata this season had a curated list of Coke studio musicians flown down to sing at the function. Clearly, GST hasn’t hit the posh weddings too much. What was expensive might have just become slightly more expensive.

“Wedding is an industry that never takes a back seat. While last year was slightly slow, this year the wedding market is throbbing with new offerings and also buyers for these services that we curate for them,” said Ranju Alex, General Manager JW Marriott Kolkata, and MPVP, East India, Bangladesh and Bhutan.

Marriott Kolkata is booked for the entire wedding season and has now started getting reservations for weddings that are to take place in the summer of 2018.

According to a latest ASSOCHAM report, the Indian wedding industry is about Rs 1,00,000 crore and is growing at 25 percent to 30 percent annually. The estimated cost of a wedding with no expenses spared could be between Rs 3 lakh and Rs 8 crore in India, the report said.

It is also estimated that the average cost of many wedding services like shopping, tent booking, food services, etc., is higher due to GST. The GST rate on most of these services is from 18 to 28 percent.

But, before GST, most of the wedding service businesses like tent services, confectionery booking, etc., were using unregistered bills on which they didn’t have to pay any tax, the report said.

Catering to all shopping-related services, Shaadilogy — a digital platform to plan and buy wedding outfits, accessories and gifts have come up with an offer for people to plan out a budget accomodating the additional taxes in the form of GST.

“Costs have definitely gone up by 25 percent at least and we have started an EMI scheme for the brides and grooms-to-be,” said Aayshya Jhunjhunwala, co-founder at Shaadilogy.

“We do not want people to compromise on their choice and the EMI will only make it easier for one to choose an expensive outfit without worrying about the price tag,” Jhunjhunwala added.

Alongside outfits and venues, even services have become expensive this wedding season.

“We are not working without bills this time and even while photography has become more expensive, people are not shying away from paying as much as Rs 5 lakh for their wedding photoshoot," said Rajesh Luthra, founder at Delhi based RL Luthra Production.

"With or without taxes,  no one wants to compromise on these frames,” Luthra added.