Union Commerce and Industry Minister Piyush Goyal has urged industries to make sure they pass on complete GST rate rationalisation benefits to consumers
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NEW DELHI — Union Commerce and Industry Minister Piyush Goyal has urged industries to make sure they pass on complete GST rate rationalisation benefits to consumers, as India’s indirect tax structure is set to undergo a massive transformation from September 22.
The GST Council has reduced rates on hundreds of items -- from soaps to small cars -- and streamlined the structure to primarily just two slabs: 5 per cent and 18 per cent, along with a 40 per cent rate for luxury and sin goods.
"Kindly ensure that we pass on the entire benefit to consumers. It will benefit the industry also," the minister said at an event here.
Goyal also informed that the government is in a mission mode to promote ease of doing business and manufacturing.
He listed a series of measures the government has taken to improve the business environment, including the rollout of a new logistics policy, the development of new industrial cities, the decriminalisation of minor offences, and cutting down on the compliance burden for the industry.
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Certain sectors, like automobiles, have already started passing benefits, the minister said, adding that the world today wants to strengthen trade ties with India by negotiating free trade agreements.
Earlier this month, the Centre directed businesses to display tentative price lists for goods, including cars and consumer durables, to showcase the price reductions of the GST rate reforms.
These comparative price lists will be uploaded to the GST website to help consumers see the relief when the new two-slab regime takes effect.
Further, retailers and dealerships are required to display both pre- and post-GST rates at their stores to ensure consumer transparency.
The Central Board of Indirect Taxes and Customs (CBIC) had held meetings with industry associations and several ministries to ensure smooth implementation of the rate cut announced at the GST Council meeting.
Industries have reached a consensus to pass on the benefits of tax cuts to consumers, with consumer durables projected to decrease by at least 10 per cent and automobiles by 12–15 per cent.