On the occasion of Diwali, Union Finance Minister Nirmala Sitharaman presented the figures of how the benefits of reforms under GST 2.0 have reached the common citizens. He said that due to the recent cut in GST rates, tax benefits have directly reached the consumers. On this occasion, he told in the press conference along with Commerce Minister Piyush Goyal and Information Technology Minister Ashwini Vaishnav that these reforms have also led to a bumper increase in the sales of vehicles and electronics.
Nirmala Sitharaman said, “The government kept a close watch on 54 daily use items and found that all these items GST Due to reforms, tax benefits have reached the consumers. The Prime Minister’s Diwali gift has successfully reached the general public. “In some cases, businesses passed on greater tax benefits to consumers than expected.”
Let us tell you that only last month, the Central Government made a major change in the GST system, in which tax rates were cut on food and daily use items as well as consumer goods like TV and fridge. This reform came into effect on 22 September, at the beginning of Navratri.
Tremendous jump in vehicle and electronics sales
Nirmala Sitharaman Said that due to reduction in tax rates, more money came into the hands of the general public, due to which the sales of vehicles increased. He said that the dispatch of three-wheelers increased by 5.5% annually, while the sales of two-wheelers reached 21.6 lakh units. In September alone, the dispatch of passenger vehicles was 3.72 lakh.
He also said that Hero Motors recorded its highest ever monthly sales in September.
Air conditioner sales doubled on the first day of GST reforms, while TV sales increased by 30-35%.
Increase in consumption of electronics
Commerce Minister Piyush Goyal said a jump in vehicle sales was seen during Navratri, with Maruti Suzuki selling 1.65 lakh cars in the first eight days. Mahindra’s sales increased by 60%, while Tata sold more than 50,000 vehicles. He said that the electronics sector has also broken all records.
Information Technology Minister Ashwini Vaishnav estimated that this year the consumption of electronics will increase by an additional Rs 20 lakh crore. He said that there has been a 25% increase in the sales of electronics, and the prices of food items have come down due to GST reforms. The construction industry is also getting direct benefits from this.
Goyal said that this reform is the biggest economic initiative since independence and despite global economic instability, India’s growth rate remained so strong that even the IMF had to increase its projected growth rate to 6.6%.
—- End —-
