New Delhi : After the massive GST cuts, Finance Minister Nirmala Sitharaman said companies must pass on the benefit of lower GST rates to consumers while stating that the Centre is working on a package to provide relief to exporters affected by US tariffs.
As reported by TOI, Sitharaman said the GST reforms, which came on PM Modi’s directions, focused on ensuring the benefits of rate reduction go to the common man, farmers and small businesses. She said ministries were already working with industry to ensure that the gains are fully transferred to consumers and pointed to several companies, such as state-run insurers and a leading Indian auto company, announcing plans to reduce prices. “We are keeping a close watch on prices and MPs have told me that they are doing so in their constituencies. Ministries are also in talks with the sectors concerned. From Sept 22, my entire focus will be on this,” the FM said.
The new rates will come into effect on Sept 22, the first day of Navratri, which marks the beginning of the monthlong festival season that sees consumer spending surge.
The FM expects that reduction in rates of 375 items, with just 13 goods and services now in the “sin and luxury” goods bracket, will offer a big boost to consumption and growth. She also said there will be stability in rates without frequent tinkering.
Source: TOI