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Union Finance Minister Smt Nirmala Sitharaman stated that the introduction of next-generation GST reforms in late September has significantly boosted sales across several sectors, including automobiles, consumer durables, and e-commerce. She explained that the new system, simplified to two main tax slabs 5% and 18% has made products more affordable and stimulated demand. The reforms were part of the government's ongoing efforts to simplify taxation and support small traders. Sitharaman also noted that luxury items and tobacco continue to attract higher GST rates of 40%.
Union Finance Minister Smt Nirmala Sitharaman said that the rollout of next-generation GST reforms in late September led to notable growth in sales across multiple sectors such as automobiles, consumer durables, and e-commerce. She was speaking during an interaction on the reforms at an event organised by the Tamil Nadu Vanigar Sangagalin Peramaippu in Coimbatore. Advertisement
She mentioned that the Finance Ministry will continue working toward simplifying the Goods and Services Tax system further. Sitharaman added that Prime Minister Narendra Modi has consistently emphasised the need to make GST simpler, with reduced rates and clearer product classifications.
The Finance Minister said that according to the Prime Minister's direction, the reforms were designed to ensure small traders benefit the most, as they are key to distributing goods in rural areas. She added that the government has held several rounds of discussions on the subject, with the Prime Minister extending full support for the introduction of these reforms.
Sitharaman explained that GST rates have now been streamlined, leaving mainly two slabs - 5% and 18%. However, certain items categorised as super luxury or 'sin goods,' such as tobacco and cigarettes, remain taxed at 40%.
She pointed out that soon after the reforms were implemented, sales in the consumer durables segment rose sharply. Air-conditioner sales reportedly doubled, while television manufacturers registered a 30-35% increase in sales of 43-inch and 55-inch models. She added that this trend shows how many households upgraded their smaller televisions after the GST adjustments.
E-commerce platforms also reported a 20% rise in online sales following the reform rollout. In the automobile sector, Maruti Suzuki received over 80,000 enquiries through its retail network the day after the reforms took effect.
Sitharaman said the government's efforts have simplified the GST framework for the trader community and that the system will continue to be reviewed to make compliance easier.
During her visit to Coimbatore, the minister also interacted with supermarket employees and customers. According to her office, customers mentioned that essential goods like shampoos, toothpastes, and food items have become more affordable after the reduction in GST rates. Store employees observed that the reforms have increased both sales and customer footfall.
Source PTI
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