Union Commerce and Industry Minister Piyush Goyal has urged industries to ensure that the full benefits of GST rate rationalisation are passed on to consumers, ahead of a major overhaul of India’s indirect tax structure from September 22.
The GST Council has reduced rates on hundreds of items — from soaps to small cars — and simplified the structure into primarily two slabs: 5 per cent and 18 per cent, along with a 40 per cent rate for luxury and sin goods.
“Kindly ensure that we pass on the entire benefit to consumers. It will benefit the industry also,” Goyal said at an event.
The minister highlighted that the government is in mission mode to promote ease of doing business and manufacturing. He outlined a series of measures aimed at improving the business environment, including the rollout of a new logistics policy, development of new industrial cities, decriminalisation of minor offences, and reduction of compliance burdens for industries.
Certain sectors, such as automobiles, have already begun passing benefits to consumers, Goyal noted. He added that the global business community is increasingly seeking to strengthen trade ties with India through free trade agreements.
Earlier this month, the Centre directed businesses to display tentative price lists for goods, including cars and consumer durables, to illustrate the impact of the GST rate reforms. These comparative price lists will also be uploaded to the GST website to provide transparency to consumers.
Retailers and dealerships are required to display both pre- and post-GST rates at their stores, ensuring that consumers can clearly see the reduction in prices.
The Central Board of Indirect Taxes and Customs (CBIC) held consultations with industry associations and several ministries to ensure smooth implementation of the rate cuts announced at the GST Council meeting.
Industries have reportedly reached a consensus to pass on the benefits of tax cuts to consumers, with consumer durables expected to become at least 10 per cent cheaper and automobiles by 12–15 per cent.
–IANS