GST Consumption Boost : Centre Projects ₹20 Lakh Crore Surge in Spending

GST Consumption Boost Drives Festive Season Spending

New Delhi : On Saturday, the government said recent GST cuts, which came into force from September 22, have reached consumers during the festive season, driving consumption a key engine for growth. This GST consumption boost has had a significant impact on household spending during these times.

Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Railways and Electronics and IT Minister Ashwini Vaishnaw told the media that recent GST reforms have created a positive trend in consumption. The ministers emphasized how the GST consumption boost is invigorating the market.

“Tax reductions have not only happened for the festive season. These reductions mean more collections, so the government now has better fiscal room to give back. Demand will sustain even after the festive season,” said FM Sitharaman. The GST consumption boost is expected to continue contributing to economic stability.

She added that the GST dispute resolution mechanism is performing well.

Since implementing the GST reforms, the National Consumer Helpline has received 3,981 calls concerning GST issues (as of October 2). Of these, officials resolved 69 percent as formal grievances and answered 31 percent as queries.

The authorities forwarded 1,992 grievances to the Central Board of Indirect Taxes and Customs (CBIC) for further action, while 761 were directly referred to relevant convergence partner companies for resolution.

According to Sitharaman, most complaints stem from gaps between understanding the GST cuts and the actual rollout. Awareness of the GST consumption boost should improve these gaps.

Positive Impact on Key Sectors Drives Economic Growth

The Finance Minister said authorities monitor drugs, medicines, and related equipment to ensure that businesses pass on GST cuts to consumers.

The automobile sector actively passed on GST cuts, which has increased sales.

Goyal stated that almost all e-commerce companies implemented the GST cuts and even offered Navratri deals in addition to the benefits.

Rs 20 Lakh Crore Extra Demand Expected from Reforms

“Indirect tax directly affects 140 crore Indians, and the government has already given Rs 2.5 lakh crore in GST benefits. The multiplier effect of these cuts is boosting the economy,” the Commerce Minister explained.

Vaishnaw said analysts had predicted consumption growth and rising demand due to GST reforms.

“Thanks to GST reforms, consumption could increase more than 10 percent this year, potentially adding around Rs 20 lakh crore in extra demand,” he added. Analysts refer to this potential growth as part of the GST consumption boost.

–IANS