GST Cuts Will Be Passed to Consumers, Says Piyush Goyal

Union Minister Piyush Goyal said on Friday that the sector has assured him that the whole reduction in taxes on a variety of goods will be reflected in their prices, and that the Center will remain vigilant to ensure that the advantages of GST rationalisation are fully passed on to consumers.

According to PTI, beginning on September 22, the first day of Navratra, the GST Council's decision to lower the tax to zero on a number of necessities and move all products—aside from sin goods—under the five and eighteen percent slabs will take effect.

Addressing a BJP press conference, Goyal also rejected the contention that the US decision to impose 50 per cent tariff on India might have prompted the Modi government to turn to reforms, as he said that the decision was an outcome of nearly year-long consultation among secretaries and finance ministers of states and the Centre.

"This decision (GST) has no link whatsoever with any decision of any country. Such a big change cannot happen overnight," he said, noting that the US decision was made only last month.

States should keep an eye on it as well, he said, even though the Center will remain vigilant to guarantee that consumers fully benefit from lower taxes.

PTI reported that he retaliated against the Congress and its allies for criticizing the government for the "delayed" rationalisation of the Goods and Services Tax regime, claiming that they had demonstrated their own ineptitude by failing to implement the GST during their 2004–14 term in power and instead focusing solely on "corruption."

He charged that the Karnataka and Telangana Congress governments were attempting to block the approval of these measures on September 3 by the GST Council, which is led by Union Finance Minister Nirmala Sitharaman and comprises finance ministers from every state, on the grounds that it would "expose" their own party.  In the end, a unanimous conclusion was made.

In a few weeks, the politically significant state of Bihar will hold assembly elections.

Goyal hailed the rationalization as a significant and comprehensive change that will benefit all industries and lower the cost of nearly every product utilized by all societal segments.

According to him, every commodity under the Modi administration is taxed less than it was under the Congress-led UPA administration, when corruption reportedly flourished and industry and consumers were saddled with a convoluted tax system.

He stated that such a comprehensive overhaul in indirect taxation was likely implemented for the first time since independence.