There is good news for consumers before the festive season. Finance Minister Nirmala Sitharaman has made it clear that companies will have to make full advantage of GST rate cuts to customers. He said that the central government is also working on a package to provide relief to exporters affected by American tariffs.
Sitharaman said that GST reforms have been implemented on the instructions of Prime Minister Narendra Modi and their aim is to benefit the common man, farmers and small traders. He said that many companies have already announced a price cut. The government is also monitoring prices and MPs have also been asked to monitor prices in their areas.
When will the new rates apply?
The new rates will be applicable from September 22. Navratri begins from this day, when the shopping of festivals across the country takes hold. The Finance Minister hopes that tax deduction on 375 goods will give a boost to consumption and the economy.
Sitharaman assured that tax rates would not be changed repeatedly. However, some opposition ruled states expressed the possibility of revenue loss in the GST Council meeting. On this, the Finance Minister said that not only the states, but also the Center. But when the money goes into people’s pockets, the government cannot only worry about its earnings.
Consumers will save
Sitharaman said that this time most of the things are under the lower tax realm and now only 13 items are left in the category of ‘luxury and sin objects’. This will simplify the tax structure and save consumers.
Central Indirect Taxes and Customs Board (CBIC) President Sanjay Kumar Aggarwal said that companies will have to update their billing system immediately, so that new rates can be implemented from 22 September. He clearly stated that companies should not keep profits with them, but should reach the customers.
Government can take action
If no area follows the rules, the government will take action with the concerned industry bodies. Especially in relation to insurance and auto sector, it has been clarified that the customers will have to give full benefit of major relief. Also, the tax burden on ‘sin objects’ like cigarette, pan masala and tobacco is not going to be reduced.
