GST Cut Benefits Reaching Consumers; Price Drop Larger Than Expected, Says Nirmala Sitharaman

On Saturday, FM Nirmala Sitharaman announced that GST reduction benefits are reaching the final consumers, and that certain products have had price reductions that are more than anticipated. She furthered on that the government has been keeping a tight check on the prices of 54 products so that the benefits of the changed taxation structure would be experienced by 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, at a Press Conference organised during a GST Bachat Utsav, in the attendances of Commerce Minister Piyush Goyal and Information and Broadcasting Minister Ashwini Vaishnaw, on the auspicious occasion of Dhanteras on October 18.

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In others, the finance minister said that businesses transmitted increased than anticipated GST rate cuts to the consumers.

“It was launched on the first day of Navratri, I feel the people of India have received it well," the Finance Minister said, addition that the government has been able to closely track 54 key items and determine that in all of them, tax benefit has been transferred to consumers is added.

‘GST 2.0 Reforms Boost Sales’

She further noted that purchases were also on a spurt during the last nine days of September with passenger vehicle dispatches of 3.72 lakh units, 21.60 lakh units of two-wheeler dispatches and 5.5 per cent YoY three-wheeler dispatches.

With the focus on the effect of the rate rationalization, Sitharaman said that the television sets sales went up by 30-35 per cent and the sales of Air Conditioners (ACs) doubled on the first day.

On the 1 st day, LG India recorded exponential improvement in sales and at the Navratri season sales of the FMCGs segment as well have improved, she added on.

Union Commerce and Industry Minister, Piyush Goyal indicated that the reforms had been long overdue. “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 made it clear that the twofold impetus of infrastructural investment and affordability are producing 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 attributed the leadership of Prime Minister, Modi, to his 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 also presented the sales statistics of electronic products and went on to say that the sale of electronics has increased 20-25 per cent this Navratri than it was 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.

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Vaishnaw also reported a 2 per cent decline in food prices and the price has been in deflation over the four months. “This new economic atmosphere has reached every household. The spirit of swadeshi is stronger than ever."

The ministers found that the GST changes have been effective in reducing prices and stimulating demand and have been successful in marking 2025 as a turning point to consumer economy in India.

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."

The main aspects of the Presser To-day:

• Electronics products record sales. Approximately 20-25 percent higher sales than previous Navratri.
• Stocks of 85-inch TVs ran out
• Inflation of food has declined due to GST reforms. It is deflation
• Electronic manufacturing with a CAGR of 10-digit.
• The exports of Smartphones india to US have overtaken its neighbour. Approximately 20 percent production of a firm taking place in India.
• Second plant semiconductor production started last week.

The actual price fall within the range of 5 percent to 12 percent depending on the monitoring data of the Central GST zones, and certain products have experienced even higher percentage fall owing to the compound effect of the fall in taxation and lower prices as a result of competition.

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