Come September 22, Indian customers will be able to enjoy the benefits of the newly slashed GST rates on various products. Union Commerce and Industry Minister Piyush Goyal engaged with the industrialists in a discussion to pass on the benefits of the recent move to the customers.
The minister says the decision to slash GST rates will provide an 'unprecedented boost' to consumption demand. Calling it a win-win situation, Goyal said that with the reduction, the sales would scale to larger volumes. While businesses would benefit from the opportunities, customers could enjoy the lower prices.
“Lower prices naturally drive higher consumption and accelerate growth. The new GST structure, which brings tax rates on several categories down to as low as 5 per cent, will act as a strong demand booster,” he added.
Among the everyday products, items such as Hair Oil, Toilet Soap, Soap Bars, Shampoos, Toothbrushes, Toothpaste, Bicycles, Tableware, Kitchenware, and other household articles have all been brought under the 5% GST slab.
Industrialists were not just asked to pass on the benefits of the GST cut to the customers, but also to promote indian products actively.
" #NextGenGST is a game-changer for manufacturers. Lower input costs with simplified slabs of 5% & 18%, faster digital compliance and rising demand will give a big boost to ‘Made in India’ products," PM Modi mentioned in a tweet on X.
According to Business Standard, the measures on implementation will help exporters directly impacted by the imposition of the steep 50 per cent tariff imposed by the United States (US) on Indian-origin products.
With the fall in the GST rates, customers can expect a price adjustment that is inclusive of the tax rates. Among the sectors that can be expected to readjust the prices are the pharmaceutical, daily-use products, food items and some specific industries.
He especially mentioned the role of the nutraceuticals sector in supporting farmers, MSMEs, and healthcare.