Union Ministers Nirmala Sitharaman and Ashwini Vaishnaw on Saturday hailed the recently implemented GST reforms, stating that consumers are already benefiting through reduced prices.
Addressing a joint press conference on GST Bachat Utsav, Finance Minister Nirmala Sitharaman said the government has been tracking price reductions in 54 items across the country since the revised GST rates came into effect on September 22.
"GST rate reduction has resulted in increase of purchases. The consumption drive will continue," Sitharaman said.
"We are convinced that on every such items benefits are being passed on by companies," she added.
Union Electronics and IT Minister Ashwini Vaishnaw stated that the government is expecting a boost in electronics consumption triggered by the GST reforms.
The minister said that data from all retail chains shows there were 20-25 per cent more sales in comparison to last Navaratri and there are many such categories, like 85-inch TV where stocks were completely sold out.
"The increase in demand for electronics goods is directly impacting electronics manufacturing. Electronics manufacturing is now growing at a double-digit CAGR. It is very likely that the consumption will increase more than 10 per cent this year, which means, there is a high possibility of Rs 20 lakh crore extra consumption compared to last year," Vaishnaw said.
Meanwhile, the Finance Minister said the Department of Consumer Affairs has received 3,169 complaints related to non-reduction in prices commensurate with the GST cut.
Of this, 3,075 complaints have been forwarded to nodal officers in the Central Board of Indirect Taxes and Customs (CBIC).
Total 94 complaints have been resolved by the department.
The department will enable a functionality on the grievance reporting portal so that the complaints can be forwarded to the chief commissioners of the respective zones from where complaints have come in, the minister said.
New lower GST rates kicked in from September 22, resulting in slashing of prices of as many as 375 items ranging from toothpaste and shampoo to cars and television sets. Tax rates of 5, 12, 18, and 28 per cent have been clubbed into two rates of 5 per cent and 18 per cent, resulting in a reduced price of 99 per cent of daily use items.
