Piyush Goyal Urges Industry To Pass On GST 2.0 Benefits To Consumers

Union Commerce and Industry Minister Piyush Goyal has called on industries to ensure full transmission of GST 2.0 rate rationalization benefits to consumers, as India prepares for a significant overhaul of its indirect tax structure beginning September 22.

The GST Council has approved rate reductions for numerous products ranging from everyday items like soaps to small automobiles, simplifying the tax structure to predominantly two slabs: 5 percent and 18 percent, with a higher 40 percent rate reserved for luxury and sin goods.

"Please ensure that the entire benefit reaches consumers. This will ultimately benefit the industry as well," stated the minister while addressing an event in New Delhi.

Mr. Goyal highlighted that the government is working diligently to enhance ease of doing business and strengthen the manufacturing sector in India.

He outlined various government initiatives aimed at improving the business climate, including implementing a new logistics policy, establishing new industrial centers, decriminalizing minor violations, and reducing regulatory compliance burdens for businesses.

The minister noted that certain industries, particularly automobiles, have already begun passing these benefits to consumers, adding that countries worldwide are now seeking to strengthen commercial relationships with India through free trade agreements.

Earlier this month, the Centre instructed businesses to display provisional price lists for products, including vehicles and consumer durables, to demonstrate the price reductions resulting from GST rate reforms.

These comparative price lists will be uploaded to the GST website, allowing consumers to easily identify the cost savings when the new two-slab system becomes effective.

Additionally, retailers and dealerships are required to display both pre- and post-GST rates at their establishments to ensure transparency for consumers.

The Central Board of Indirect Taxes and Customs (CBIC) has conducted meetings with industry associations and multiple ministries to facilitate smooth implementation of the rate reductions announced during the GST Council meeting.

Industry representatives have agreed to pass on the benefits of tax reductions to consumers, with consumer durables expected to decrease in price by at least 10 percent and automobiles by 12-15 percent.