The government’s Next Gen GST reforms are beginning to show a strong impact on the economy as the ongoing festive season has witnessed record-breaking sales
NEW DELHI — The government’s Next Gen GST reforms are beginning to show a strong impact on the economy as the ongoing festive season has witnessed record-breaking sales, especially in the automobile sector, experts said on Sunday.
Income tax expert Vinod Rawal said that the benefits of the new GST system are clearly visible on the ground.
“You see, the festive season has already begun. In the very first days of Navratri, when 45 per cent of sales are usually made, this time the record of the last 10 years has been broken,” he told IANS.
“Maruti has delivered 1,65,000 cars, Mahindra’s sales have increased by 60 per cent compared to last year, Hyundai has captured a 72 per cent share in the SUV segment, and Tata has sold 50,000 vehicles,” Rawal added.
He added that the purpose of GST was “One Nation, One Tax,” and the new format has simplified the system further by abolishing cess and merging rates directly into the tax structure.
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“When your refund is quick, its impact is visible immediately. This reform is making a big difference in the market,” Rawal explained.
“If you look at this, the impact of Next Gen GST is clearly visible. You can't say that this impact will be seen in the future; it is visible right now,” he stated.
Echoing similar views, auto industry expert and former Managing Director of Nissan India Private Limited, Arun Malhotra, said that GST reform has provided a significant boost to the automobile industry.
“Prices of 95 per cent of vehicles have dropped by 8–10 per cent. Since the beginning of the festive season on the first Navratri, the industry has seen a sharp rise in demand, driven by reduced prices and ongoing festive offers,” he said.
Experts believe that the Next Gen GST reforms have not only simplified the tax structure but also strengthened consumer confidence, setting the stage for a robust festive season and a stronger economic outlook.