Finance Minister Nirmala Sitharaman on Saturday spoke about the effect of GST 2.0 reforms and said that "impact of GST cuts will sustain beyond festive season".
While addressing a press conference, Sitharaman said, "The pent up demand was only for a month as people were waiting once they got the indication in August there will be GST cuts. So we should not conflate it to revenge spending and will it sustain? The impact of GST cuts will sustain beyond the festive season."
"The consumption story will continue. We have corrected most of inverted duty structure," Sitharaman added.
She further added that GST cut benefits are reaching end consumers, and some items have seen more-than-expected price drops. She added that the government is closely monitoring the prices of 54 products to ensure the benefits of the revised tax structure reach the common man.
“More than expected tax reduction has happened and consumers have ended up getting benefits that were expected and some more than that,” said Finance Minister Nirmala Sitharaman during a GST Bachat Utsav press conference, held along with Commerce Minister Piyush Goyal and Information & Broadcasting Minister Ashwini Vaishnaw, on the auspicious day of Dhanteras on October 18.
In some cases, businesses passed on higher than expected GST rate cuts to consumers, the finance minister said.
GST 2.0 reforms was launched on September 22, the first day of Navratri.
“It was launched on the first day of Navratri, I feel the people of India have received it well,” the Finance Minister said, adding that the government has closely monitored 54 essential items and found that in every one of them, the tax benefit has been passed to consumers.
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