Modi Ministers Nirmala Sitharaman, Piyush Goyal, Ashwini Vaishnaw Present GST 2.0 Report Card

Union Finance Minister Nirmala Sitharaman, alongside ministers Piyush Goyal and Ashwini Vaishnaw, highlighted the positive impact of recent GST rate cuts. These reductions have led to significant sales increases in both the automotive and electronics sectors. The announcement was made just before Diwali, showcasing how these tax benefits have been effectively passed on to consumers.

GST Benefits for Consumers

Nirmala Sitharaman emphasised that the government closely monitored 54 essential items to ensure that GST benefits reached consumers. She stated, "The Prime Minister's Diwali gift has been delivered." In some instances, businesses provided even greater savings than anticipated due to the GST rate cuts.

Impact on Vehicle Sales

The GST reforms, which began on September 22 during Navratri, resulted in a surge in vehicle sales. Three-wheeler dispatches increased by 5.5% year-on-year, while two-wheeler sales hit 21.6 lakh units. Passenger vehicle dispatches alone reached 3.72 lakh in September. Hero Motors achieved its highest monthly sales ever during this period.

Electronics Sector Growth

Commerce Minister Piyush Goyal noted that Maruti Suzuki sold 1.65 lakh cars within the first eight days of Navratri. Mahindra's sales rose by 60%, and Tata sold over 50,000 vehicles. The electronics sector also saw record-breaking growth, with TV sales increasing by 30-35% and AC sales doubling on the first day of GST reforms.

Economic Growth Amid Global Challenges

Goyal described the GST overhaul as a major reform since India's independence, highlighting its significance amid global economic volatility. He mentioned that India's growth is so robust that even the IMF revised its forecast to 6.6%. This underscores India's resilience despite challenges posed by US trade policies.

Boost in Electronics Consumption

IT Minister Vaishnaw predicted an additional Rs 20 lakh crore in electronic consumption this year due to a 25% increase in electronics sales. He also pointed out that food prices are decreasing because of GST reforms, benefiting both consumers and manufacturers.

The recent GST rate cuts have not only boosted consumer spending but also strengthened various sectors of the economy.