Nearly a month after the new Goods and Services Tax (GST) rates came into effect, Finance Minister Nirmala Sitharaman and IT & Railways Minister Ashwini Vaishnaw outlined how Indians have benefited from the cuts.
Out of 54 daily use items the government has been closely monitoring, we find that in every one of them, the tax benefit due to the GST Reforms has been passed to the end-consumer, said Sitharaman during a press conference.
She highlighted the positive impact of reforms, noting strong vehicle sales across segments. Three-wheeler dispatches rose 5.5 per cent year-on-year, while two-wheeler sales reached 21.6 lakh units. Passenger vehicle despatches alone stood at 3.72 lakh in September, driven by a flurry of buying in just the last nine days of the month, she said.
Consumption to go up by 10 per cent
Because of GST Reforms, consumption is likely to increase by more than 10 per cent this year, i.e., by around ₹20 lakh crore, said Vaishnaw. “Investment too is expected to increase significantly due to GST Reforms.”
The additional electronic consumption worth ₹20 lakh crore is expected this year due to GST reforms, Vaishnaw stated.
“This year, India has surpassed its neighbour in exporting smartphones to the United States. This is a huge achievement for our country. Some of the biggest companies, about 20 per cent of their manufacturing is now happening in India.”
