New Delhi – India’s government confirmed that the fresh GST cuts that began on September 22 are staying in place for the busy festive shopping season. The move is aimed at keeping consumer spending high, which the government sees as a key engine for economic growth.
Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal and Railways and IT Minister Ashwini Vaishnaw spoke to reporters about the effects of the tax reforms. “We didn’t just cut taxes for a short holiday window,” said Sitharaman. “The lower rates tee up better collections, give the government breathing room, and the demand is set to last beyond the festivals.”
The new GST rules have also sped up dispute resolution. The National Consumer Helpline logged 3,981 calls about GST issues up to October 2. About 31 % were questions, while 69 % were complaints that needed follow‑up. Nearly 2,000 of these were sent to the Central Board of Indirect Taxes and Customs (CBIC), and 761 were handed directly to companies for rapid resolution. The main channel of frustration still comes from confusion about how the tax cuts should be applied.
Sitharaman pointed out that the government monitors key sectors to ensure GST savings reach buyers. “We’re keeping a close eye on drugs, medicines and related equipment,” she said. “The auto industry is also reporting stronger sales thanks to the lower rates.”
E‑commerce firms were noted for promptly applying the cuts. “Almost every online retailer has rolled out the lower GST, and many added extra Navratri offers as we observed,” Goyal added.
“Indirect taxes affect 140 million Indians directly. The Rs 2.5 trillion saved through GST cuts is already generating a multiplier effect for the economy,” Goyal explained.
Vaishnaw highlighted the broader impact. “Analysts predict consumption could grow over 10 % this year, which points to roughly Rs 20 trillion more in demand thanks to the reforms.”
These tax cuts – aimed at easing the cost of everyday goods and boosting demand – form part of India’s strategy to keep growth steady during the festive season and beyond.
Source: ianslive
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