In a recent press conference, Piyush Goyal emphasized the government's dedication to ensuring GST rate reductions benefit Indian consumers. This marks
a significant step in transforming the nation's economy.
GST's Transformative Impact
The government aims to ensure the benefits of substantial reductions in Goods & Services Tax (GST) rates reach consumers. Minister Goyal noted that the new GST structure will likely increase demand, and lower prices for many consumer goods after September 22. He also praised the government's commitment to economic reform, contrasting it with previous administrations. This GST rationalisation is a result of a year-long consultation among stakeholders and is not related to the US's decision on tariffs.
Contrast in Governance
Goyal highlighted how, during the Congress-led rule, State governments lacked confidence in central support during revenue loss. Under Prime Minister Narendra Modi, the government took the step to ensure compensation for States if revenue dipped post-GST introduction. He contrasted this with the past, pointing to the absence of effective measures and transformational reforms under previous regimes.
Collective Effort Required
The Minister called for a collaborative effort to ensure the benefits of GST reductions are passed on. Industry has given assurance that the benefits will be passed to consumers. He also emphasized the government's responsibility in facilitating this process. The minister also thanked Prime Minister Narendra Modi for bringing "a historic and comprehensive reform that will transform the country’s economy to new heights."
Simplification Benefits All
The GST rationalisation is designed to facilitate ease of doing business. The simplification of the tax structure is seen as a major relief for consumers, farmers, and industries. The reforms are seen as a historic change in the tax structure since Independence, with focus on creating a more efficient and business-friendly environment. This is a step towards a more robust Indian economy.
