GST reforms has led to growth in sales across sectors: FM Sitharaman

Union Finance Minister Nirmala Sitharaman on Tuesday said that the implementation of next-generation GST reforms on September 22 has led to a growth in sales across sectors, including automobiles, consumer durables, e-commerce among others.

During an interaction on Next Generation GST reforms at an event organised by the Tamil Nadu Vanigar Sangagalin Peramaippu, she said her Ministry would continuously work on further simplifying the Goods and Services Tax system.

As per his view, the rates have been reduced and classifications of the products has been simplified, she added.

"Now, there are only two rates—5% and 18% (as GST)", she said.

Referring to the 40% GST tax levied on some products, Sitharaman said, "Those products which are described as super luxury products are taxed at 40%. They are also called as SIN goods. For example, tobacco products like cigarettes come under this category."

Meanwhile, India's economy is expected to grow by 7.4% in the current financial year as the effects of GST rate rationalisation kick in, Business Standard reported, citing a National Institute of Public Finance and Policy (NIPFP) review.

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In her brief address, she said that soon after the next generation GST reforms were introduced on September 22, sales of consumer durables surged. "For example, sales of air conditioners doubled. Similarly, television manufacturers told us that they have seen a 30-35% increase in sales of 43 and 55 inch televisions." 

"This conveys that those people who had small television sets at their home opted for bigger ones after the GST reforms were introduced," she said.

Traders engaged in sales via online, particularly e-commerce players, said that they have witnessed a 20% sales jump, she added.

On the sales of automobiles, Sitharaman said automobile manufacturer Maruti Suzuki alone saw over 80,000 enquiries in their retail networks across the country on the next day after the next generation GST reforms were introduced (September 22).

The finance minister observed that the Ministry has simplified the GST structure for trader community with the introduction of next generation GST reforms.

She said, "We have been reviewing the system for the benefit of the traders and will continue to review it to further simplify the (GST) system.

Earlier in the day, Sitharaman visited a supermarket in Coimbatore and interacted with the employees and customers who were present.

The public, during their interaction with the finance minister, stated that due to GST tax rate reductions, many essential items such as shampoos, toothpastes and food products are now available at affordable prices, the office of Nirmala Sitharaman said in its official social media account and shared images of the finance minister interacting with the customers and employees.

"Store employees noted that since the implementation of next-generation GST reforms, sales of various products have increased and footfall of customers has also risen," it added.

(With inputs from Press Trust of India and other publications.)