GST rate cuts benefiting consumers across all categories: Nirmala Sitharaman
What's the story
Finance Minister Nirmala Sitharaman has confirmed that the benefits of the recent Goods and Services Tax (GST) rate cuts are reaching consumers across all categories. The minister made this statement during a press conference with Commerce Minister Piyush Goyal and Electronics & IT Minister Ashwini Vaishnaw. Sitharaman said the government is closely monitoring 54 key items to ensure these tax benefits are passed on to end users.
Price reduction
Weighted average of reduction being passed on
Sitharaman emphasized that the weighted average of reduction is being passed on to consumers, and in some cases, even more. She said, "For every item I have monitored, which affects the day-to-day life of citizens, the weighted average of the reduction is being passed on." The minister also noted that while some products like high-end Portland cement saw a lesser-than-expected pass-through, overall rate cuts have effectively translated into lower prices for consumers.
Benefit distribution
Goyal calls GST reform 'biggest since independence'
Sitharaman emphasized that benefits are being passed on across different items. The recent GST cuts included a reduction from 12% to 5% and from 28% to 18% on most goods. Goyal described the move as the "biggest GST reform since Independence," stressing its multiplier effect on the economy by boosting consumer spending, investments, and infrastructure growth.
Sales surge
Vaishnaw reports record sales during Navratri
Vaishnaw reported record sales during the Navratri period, with 20-25% higher sales across electronics categories such as smartphones, air conditioners, washing machines, and set-top boxes. He said the GST reforms have also helped curb food inflation, noting that food prices have been in deflation for four months. Vaishnaw added India's electronics manufacturing sector is growing at a double-digit pace and employs nearly 25 lakh people directly.