PUDUCHERRY: The Government of India’s next-generation GST reforms, which came into effect on September 22, 2025, have spurred a sharp rise in economic activity across the Union Territory, according to an analysis by the Commercial Taxes Department, Puducherry.
Data from the Transport Department reveals a significant increase in vehicle registrations—up by 35% overall compared to the corresponding period last year. Car registrations rose by 37%, while sales of two-wheelers and three-wheelers increased by 35% and 38%, respectively. Goods vehicle registrations saw the highest jump at 53%, followed by buses at 50%.
A similar upward trend was recorded in the Fast-Moving Consumer Goods (FMCG) sector. Reports from major departmental stores indicate a 15% increase in sales across a representative basket of goods. Among individual products, hair oil sales grew by 48%, ghee by 49%, and toothpaste by 10%, reflecting renewed consumer confidence and higher spending following the tax reforms.
The Commercial Taxes Department has undertaken a series of awareness and outreach programmes to ensure the smooth implementation of the new GST structure, said Yasin M. Choudhary, Secretary-cum-Commissioner (ST).
These initiatives, involving trade and industry associations, GST practitioners, and tax professionals, aim to clarify procedural changes and help businesses and consumers benefit from reduced rates and simplified compliance.
“The Department will continue to monitor the economic impact of the GST rate changes and ensure that the benefits of lower tax rates are effectively passed on to the public,” he said
With the onset of the festive season and the momentum generated by the reforms, officials expect tax buoyancy and revenue growth to strengthen further in the coming months. The Department reaffirmed its commitment to transparency, continuous engagement with stakeholders, and sustaining the positive economic trend.
