GST Benefits Passed to Consumers; Rs 20 Lakh Crore Consumption Boost Expected: Centre

New Delhi – The government on Saturday said that the benefits of recent GST cuts, effective from September 22, are being extended to consumers during the festive season, with consumption seen as a key driver of economic growth.

Addressing the media, Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Railways and Electronics & IT Minister Ashwini Vaishnaw highlighted that the recent GST reforms have positively influenced consumption trends.

“Tax reductions are not limited to the festive season. These cuts mean higher collections and better fiscal room to give back to the people. Demand is expected to remain strong even after the festivities,” said Sitharaman. She also noted that the GST dispute resolution mechanism is functioning effectively.

Since the reforms, the National Consumer Helpline has received 3,981 GST-related calls as of October 2, with 31% being queries and 69% formal grievances. Of these, 1,992 complaints have been forwarded to the Central Board of Indirect Taxes and Customs (CBIC) for action, while 761 were referred in real time to relevant companies for direct resolution. Most complaints stem from a gap between public understanding of GST cuts and their actual implementation.

On specific sectors, Sitharaman mentioned that drugs, medicines, and medical equipment are being closely monitored to ensure GST cuts are passed on. The automobile sector has also seen encouraging results, with sales rising as tax reductions reach consumers.

Goyal added that almost all e-commerce companies have implemented GST cuts and, in addition, offered festive promotions during Navratri. “Indirect taxes directly affect 140 crore Indians. With GST cuts amounting to Rs 2.5 lakh crore, the multiplier effect has already boosted the economy,” he said.

Vaishnaw emphasized that GST reforms are expected to increase consumption significantly. “It is very likely that consumption will grow by more than 10% this year, translating to additional spending of around Rs 20 lakh crore,” he said.

With inputs from IANS