How’s the Josh after Diwali gifts? Sitharaman, Vaishnaw state how Indians gained from GST cuts
In each of the 54 daily use items that the government is keeping a close eye on, we have seen tax benefit being passed on to the end consumer due to GST Reforms, Sitharaman said at a press conference.
He emphasized the positive impact of the reforms by drawing attention to the strong vehicle sales in the segments. While three-wheeler sales increased by 5.5% YoY, two-wheeler sales reached 21.6 lakh units. He said passenger vehicle shipments alone stood at 3.72 lakh in September, which was due to the buying rush in the last nine days of the month.
He also touched on the problems related to classification, saying that it created a lot of questions and confusion in people’s minds, and the courts also took a lot of time, but all of these were resolved. “So having done that and having done it at a good time for Deepavali, actually launching it on the first day of Navratri, I feel the people of India have received it well.”
‘Consumption will increase by 10 percent’
Due to GST Reforms, consumption is likely to increase by more than 10% this year, i.e. around Rs. 20 lakh crore, Vaishnaw said. “Investments are also expected to increase significantly due to GST Reforms.”
Vaishnaw stated that additional electronic consumption worth Rs 20 lakh crore is expected this year due to GST reforms: “This year, India has surpassed its neighbor in smartphone exports to the US. This is a great achievement for our country. Some of the largest companies now have around 20 per cent of their production in India.”
