NEW DELHI: After the rationalisation of Goods and Services Tax (GST) reforms, the Modi government will keep a vigil to ensure that the benefits of the reforms are passed on fully to consumers, Union Minister for Commerce and Industry, Piyush Goyal, said on Friday.
At a media briefing held at the BJP headquarters, Goyal asserted that the Centre will keep a close watch on the implementation process. He added that the industry had assured him that “the entire fall in taxes on various items will be reflected in their prices.”
Goyal dismissed claims that the US government’s recent decision to impose a 50% tariff on Indian goods might have spurred the Modi government into initiating the reforms.
He clarified that the GST rationalisation was the result of nearly a year of sustained consultations involving state and central finance ministers and senior secretaries. Importantly, he said “This decision (GST) has no link whatsoever with any decision of any country. Such a big change cannot happen overnight,” and pointed out that the US decision was made only last month.
While the Centre will closely monitor the rollout of the new tax regime to ensure consumers benefit from the reduced rates, Goyal also made an appeal to the state governments to do the same.
Responding to criticism from the Congress and its allies over the so-called “delay” in implementing GST rationalisation, the minister retorted that such criticism only exposes their own shortcomings. He further accused the Congress of failing to implement GST during its 2004–14 tenure, choosing instead to focus on “corruption”.
He went on to allege that Congress-led governments in Karnataka and Telangana had attempted to obstruct the GST Council, chaired by Union Finance Minister Nirmala Sitharaman—from approving the reforms on September 3, as it would “expose” their parties.
However, the decision was consensual, he added.
Aiming at Congress leader Rahul Gandhi, Goyal remarked that he is “like a rocket which could not take off despite numerous launch attempts.” The minister went on to say that “he himself does not know what he said on some issue earlier and what he is saying now, and people of the country
are not affected by his comments.”
The minister further emphasised that the Union government’s decisions are not driven by electoral considerations. He recalled an instance in which the PM reprimanded him for suggesting that the announcement of an investment project in a poll-bound state would benefit the BJP. “Modi asked him to not make the announcement till the polls,” he said, adding that the BJP went on to win and the project was announced at a later date.