The recent overhaul of the country’s Goods and Services Tax (GST) had pushed consumption and eased the flow of money as most goods became cheaper, said Union Finance Minister, Nirmala, Sitharaman, on Saturday.
Addressing a press conference on GST Bachat Utsav, she said lowered taxes on items had benefited consumers and resulted in increased purchasing power, with some businesses even passing on higher-than-the-weighted-average GST rate cut benefits.
“GST rate reduction has resulted in increase of purchases. The consumption drive will continue,” Sitharaman said, adding that they are convinced that “on every such item, benefits are being passed on by companies”.
Meanwhile, the government has been monitoring price cuts in 54 items across the country since the lower GST rates came into effect on September 22, the minister said, adding that complaints relating to non-reduction in prices are being dealt with seriously.
The Department of Consumer Affairs has received 3,169 complaints related to non-reduction in prices commensurate with GST cut, Sitharaman said.
Of these, 3,075 complaints have been forwarded to nodal officers in the Central Board of Indirect Taxes and Customs (CBIC) and a total of 94 complaints have been resolved by the department, she shared.
“The department will enable a functionality on the grievance reporting portal so that the complaints can be forwarded to the chief commissioners of the respective zones from where complaints have come in”, the minister said.
The new GST rates – which include only the 5 per cent and 18 per cent tax slabs – have resulted in slashing of prices of as many as 375 items, ranging from toothpaste and shampoo to cars and television sets.
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Union Electronics and IT Minister Ashwini Vaishnaw, who also addressed the joint press conference along with Nirmala Sitharaman and Commerce and Industry Minister, Piyush Goyal, said data from various retail chains across the country showed that there were 20-25 per cent more sales in electronics goods in comparison to last Navaratri.
The government expects electronics consumption worth ₹20 lakh crore to take place this year due to the GST reforms, he added.
Some categories of electronics, such as 85-inch TVs, were completely sold out, he informed.
“The increase in demand for electronics goods is directly impacting electronics manufacturing. Electronics manufacturing is now growing at a double-digit CAGR. It is very likely that the consumption will increase more than 10 per cent this year, which means, there is a high possibility of ₹20 lakh crore extra consumption compared to last year,” Vaishnaw said.
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