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Informist, Thursday, Sept. 4, 2025

 

--Minister Goyal: See big boost to virtuous growth cycle from GST rate cuts 
--Minister Goyal: Urge industry to pass on GST rate cut benefit to consumers 
--CONTEXT: Trade Minister Goyal's comments at an event in New Delhi 
--Minister Goyal: GST rate cut to give major boost to consumer demand

NEW DELHI– Commerce and Industry Minister Piyush Goyal urged the Indian industries to pass on the benefits from the latest cuts in goods and services tax rates to consumers. The GST Council late Wednesday approved a two-slab structure of 5% and 18%, with a new special rate of 40% for sin goods and luxury items.

There have been instances in the past when the benefits of GST rate cuts have not been passed on to consumers. Instead, companies have increased their profit margins. In November 2017, after the Council reduced GST rates on restaurants to 5% from 18% and 12%, anti-profiteering investigations were initiated against some restaurants for allegedly not passing on the benefit of reduced taxes to customers.

 

The government is hopeful that the industry will pass on the benefits of the latest GST rate cuts without the intervention of an anti-profiteering authority. 

 

The GST reforms are likely to give a major boost to consumer demand, Goyal said. The strong demand will encourage corporates to make new investments and will also give an impetus to employment, Goyal said. A virtuous cycle of growth will come into motion as a result of this, the minister added.  End

 

Reported by Krity Ambey

Edited by Tanima Banerjee

 

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