How Can GST Reforms Benefit Consumers? Piyush Goyal Weighs In
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Synopsis
Piyush Goyal urges industries to pass on GST benefits to consumers as major tax reforms reshape India's economy. Discover how these changes could lead to significant price reductions across multiple sectors.
Key Takeaways
- GST rates are now simplified into two main slabs.
- Consumers can expect significant price reductions.
- Industries are urged to pass on tax benefits to consumers.
- Government efforts aim to enhance business ease and transparency.
- Price lists will be available for consumer reference.
New Delhi, Sep 21 (NationPress) Union Commerce and Industry Minister Piyush Goyal has called upon industries to ensure that they transfer the full benefits of GST rate rationalization to consumers, as India's indirect tax framework is poised for a significant overhaul starting September 22.
The GST Council has lowered rates on numerous products, ranging from soaps to compact cars, and simplified the tax structure to predominantly two slabs: 5 percent and 18 percent, along with a 40 percent rate applied to luxury and sin products.
“Please make sure we pass on the complete benefit to consumers. This will also aid the industry,” the minister emphasized during an event.
Goyal also shared that the government is committed to enhancing the ease of doing business and promoting manufacturing.
He detailed various measures implemented by the government to foster a conducive business environment, including the introduction of a new logistics policy, establishment of new industrial cities, the decriminalization of minor infractions, and the reduction of compliance burdens for industries.
Several sectors, particularly automobiles, have already begun to pass on these benefits, the minister noted, adding that the global community is eager to bolster trade relations with India through negotiations for free trade agreements.
Earlier this month, the central government instructed businesses to present tentative price lists for products like cars and consumer goods to highlight price reductions stemming from the GST rate reforms.
These comparative price lists will be accessible on the GST website, helping consumers to understand the savings once the new two-slab system is implemented.
Moreover, retailers and dealerships must showcase both pre- and post-GST rates within their establishments to promote transparency for consumers.
The Central Board of Indirect Taxes and Customs (CBIC) had convened discussions with industry associations and various ministries to facilitate the seamless execution of the announced rate cuts from the GST Council meeting.
Industries have reached an agreement to extend the tax cut benefits to consumers, with consumer durables expected to drop by at least 10 percent and automobiles by 12–15 percent.
Point of View
It is imperative that the government and industries work collaboratively to ensure that the benefits of GST reforms are fully realized by consumers. This approach aligns with the broader goal of enhancing consumer trust and economic stability in the country.
NationPress
21/09/2025
Frequently Asked Questions
What are the new GST rates?
The new GST rates have been set to primarily two slabs: 5% and 18%, with a 40% rate for luxury and sin goods.
How will these GST reforms impact consumers?
Consumers can expect price reductions across various sectors, with estimates suggesting a decrease of at least 10% for consumer durables and 12-15% for automobiles.
What measures has the government taken to support businesses?
The government has introduced a new logistics policy, established new industrial cities, decriminalized minor offences, and reduced compliance burdens to improve the business environment.
Will businesses display pre- and post-GST prices?
Yes, businesses are required to display both pre- and post-GST prices to ensure transparency for consumers.
How can consumers track price changes from GST reforms?
Consumers can access comparative price lists on the GST website, which will highlight the reductions once the new rates are implemented.
