Commerce Minister Piyush Goyal has assured that the benefits of reduced GST rates will be directly passed on to consumers, with industry leaders pledging to transfer gains from lower taxes to end-users. Calling GST reforms “one of a kind since independence,” he described the system as a gift to the nation.
Goyal highlighted that under Prime Minister Narendra Modi’s leadership, the government honored its commitment to states by ensuring 14% annual revenue growth compensation, even during the pandemic. He contrasted this with the pre-2014 era, when multiple indirect taxes created a heavy burden, noting that GST rationalized tax rates significantly.
The minister argued that the new structure will ease consumer costs, spur demand, and encourage fresh investments, creating a multiplier effect on the economy. The GST Council recently approved a sweeping restructuring, replacing the earlier four-tier system with a simplified two-rate model of 5% and 18%, alongside a 40% slab for select items.
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