Commerce Minister Piyush Goyal has urged the industry to ensure that the benefits of reduction in the Goods and Services Tax (GST) rates are entirely passed on to the consumers.
"I will urge you all to resolve that the entire benefit of yesterday's significant concessions on GST will be passed on to consumers. We will all ensure that we will all buy India-made products. Swadeshi goods, we will promote and encourage, generating more domestic demand and investments so that India continues to grow as the fastest in the world," Goyal said while speaking at the Bharat Nutraverse Expo 2025 on September 4.
Goyal urged the industry to make a twin commitment to PM Modi, and pass on the GST cut benefits to the common man as well as promote swadeshi goods.
The GST Council has approved the proposal to overhaul indirect tax system by modifying the structure into a ‘Simple Tax’ with a standard rate of 18 percent and a merit rate of 5 percent. A special de-merit rate of 40 percent will be levied for a select few goods and services.
"Passing on the benefit entirely to consumers will not immediately seem like a benefit to your bottom line, but the tremendous boost it will provide to consumption, imagine the greater degree of sales you can aspire for that it is a win-win for everyone. I hope I am correct when I am assuming that the entire GST benefit will be passed on to your consumers," Goyal added.
Goyal said that the impact of the changes in the GST rates will be transformational since they are coming on the back of several initiatives of the last 11 years, adding that the steps will "significantly help every stakeholder from farmers to MSMEs, and every consumer."
The changes in GST rates for all goods except pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi, will be implemented from September 22, 2025. Read More
"India is the world's fastest growing economy that ensures even during a highly volatile, uncertain global climate with geopolitical risks, the country grows at 7.8 percent in the first quarter of FY26," he added.
Minister Goyal said he is confident that India can weather any challenge, as it has done in the past, and cited the country's contribution during the pandemic when medicines and vaccines were supplied to over 100 nations either free of cost or at nominal prices without making profit.
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