India’s Commerce and Industry Minister Piyush Goyal is calling on businesses to fully pass along the benefits of upcoming GST rate cuts to everyday consumers. Starting September 22, the country’s indirect tax system will see a big overhaul, making goods cheaper across the board.
The GST Council just slashed taxes on hundreds of everyday items, from basic soaps to compact cars. The new setup simplifies things into mainly two rates: 5 percent and 18 percent. Luxury and sin goods, like high-end watches or tobacco, will stick with a steeper 40 percent slab. This GST rate rationalisation aims to ease the burden on families while boosting the economy.
Speaking at an event in New Delhi, Goyal stressed the importance of transparency. “Kindly ensure that we pass on the entire benefit to consumers. It will benefit the industry also,” he said. He added that some sectors, like automobiles, have already started lowering prices to reflect the changes.
The government is pushing hard on ease of doing business and ramping up manufacturing in India. Goyal highlighted key steps, including a fresh logistics policy to speed up supply chains, plans for new industrial cities, decriminalizing minor offenses, and slashing paperwork for companies. These moves are drawing global interest, with countries lining up to negotiate free trade agreements (FTAs) with India to strengthen trade ties.
To help shoppers spot the savings, the government directed businesses earlier this month to post tentative price lists online, especially for cars and consumer durables like refrigerators and TVs. These lists will go up on the official GST website, showing clear before-and-after comparisons once the two-slab system kicks in.
Retailers and car dealerships must now display both old and new GST rates right in their stores for full consumer transparency. The Central Board of Indirect Taxes and Customs (CBIC) has been working closely with industry groups and ministries to roll out these tax reforms smoothly.
Industry leaders have agreed to share the gains: expect consumer durables to drop by at least 10 percent, and car prices to fall 12 to 15 percent. This GST overhaul could mean real relief at the checkout for millions of Indians shopping for essentials and big-ticket items alike.
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