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GST Cut Benefits Reaching Consumers, Price Drop Bigger Than Expected: Nirmala Sitharaman
GST Cut Benefits Reaching Consumers, Price Drop Bigger Than Expected: Nirmala Sitharaman
FM Nirmala Sitharaman on Saturday said GST cut benefits are reaching end consumers, and some items have seen more-than-expected price drops. She added that the government is closely monitoring the prices of 54 products to ensure the benefits of the revised tax structure reach the common man.
“More than expected tax reduction has happened and consumers have ended up getting benefits that were expected and some more than that," said Finance Minister Nirmala Sitharaman during a GST Bachat Utsav Press Conference, held along with Commerce Minister Piyush Goyal and Information & Broadcasting Minister Ashwini Vaishnaw, on the auspicious day of Dhanteras on October 18.
In some cases, businesses passed on higher than expected GST rate cuts to consumers, the finance minister said.
“It was launched on the first day of Navratri, I feel the people of India have received it well," the Finance Minister said, adding that the government has closely monitored 54 essential items and found that in every one of them, the tax benefit has been passed to consumers.
‘GST 2.0 Reforms Boost Sales'
She added that the last nine days of September alone saw a surge in purchases, with passenger vehicle dispatches touching 3.72 lakh units, two-wheeler sales reaching 21.60 lakh units, and three-wheeler dispatches growing 5.5 per cent YoY.
Emphasising on the impact of rate rationalization, Sitharaman stated that sales of television sets surged 30-35 per cent while the sales of Air Conditioners (ACs) doubled on the first day.
On day 1, LG India noted exponential growth in sales and during Navratri season sales of FMCG sector too have gone up, she further added.
Union Commerce and Industry Minister, Piyush Goyal said the reforms were long in the making. “Finance Minister's announcement of the GST reform on September 3 had been in the works for nearly a year and a quarter under the guidance of the Prime Minister. I thank the Prime Minister and the Finance Minister for making this year's Navratri so special. On September 22, the new form of #NextGenGST was implemented. In the markets, among industry and business circles, and among the general public, everyone experienced a renewed sense of enthusiasm and energy," he added.
He emphasised that the dual push of infrastructure investment and affordability is yielding a multiplier effect. “This is why India remains one of the fastest-growing economies globally. The IMF has revised our GDP growth forecast to 6.6 per cent."
He credited Prime Minister Modi's leadership for driving ease of living and inclusive growth. “From the poor to the youth, every section of society is moving forward with the resolve to build a #ViksitBharat by 2047."
Union Information and Technology and Railways Minister, Ashwini Vaishnaw shared the sales data of electronic items and added that electronics sales surged 20-25 per cent this Navratri compared to last year. “From TVs to washing machines and smartphones, every major category saw increased demand, resulting in record sales and a boost to electronics manufacturing." The sector now directly employs 25 lakh people.
Vaishnaw also noted a 2 per cent reduction in food inflation, with prices experiencing deflation for four consecutive months. “This new economic atmosphere has reached every household. The spirit of swadeshi is stronger than ever."
The ministers concluded that the GST reforms have successfully driven down prices while fuelling demand, marking 2025 as a turning point for India's consumer economy.
On the monitoring of complaints, Sitharaman said, “The total number of cases or complaints that the consumer affairs department has received is 3,169 grievances. Of this, 3,075 grievances have been forwarded to the nodal officer in the CBIC (Central Board of Indirect Taxes and Customs). A total of 94 complaints were addressed at the department itself."
Key Points of the Presser Today:
According to the Central GST zones' monitoring data, the actual price decrease ranges between 5% and 12%, with some products witnessing even sharper declines due to the cumulative impact of tax reduction and competitive pricing.
(With inputs from agencies)
Source: News18
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