GST Rate Cuts Benefiting Common Citizens, Says FM Sitharaman

Finance Minister Nirmala Sitharaman says GST rate cuts are benefiting consumers, driving record sales in automobiles, electronics, and FMCG sectors this festive season.

New Delhi, Oct 19 : Finance Minister Nirmala Sitharaman on Friday stated that recent GST rate reductions have directly benefited consumers, leading to increased purchases across key sectors. Speaking at a joint press conference with Information and Broadcasting Minister Ashwini Vaishnaw and Commerce and Industry Minister Piyush Goyal, she highlighted that the government is closely monitoring 54 daily-use items and confirmed that the tax benefits are reaching end-consumers.

“GST 2.0 reforms have given a major boost to the country’s economy, leading to record sales across sectors such as electronics, automobiles, and consumer goods during the festival season,” Sitharaman said. “Out of the 54 items we are tracking, in every one of them, the tax benefit due to GST reforms has been passed to the consumer.”

She noted significant growth in the automotive sector, with three-wheeler dispatches up 5.5% year-on-year and two-wheeler sales reaching 21.60 lakh units. Passenger vehicle dispatches stood at 3.72 lakh units in September alone. LG India also reported exponential growth in sales during the Navratri season, and the Fast-Moving Consumer Goods (FMCG) sector saw increased demand.

Commerce Minister Piyush Goyal praised the government’s economic measures, saying, “Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman have brought the blessings of Goddess Lakshmi into every home. Whether it’s the rich, the middle class, or farmers, 2025 is shaping up to be memorable for all. The major income tax relief announced on February 1 has already sparked a festive spirit across the nation.”

Goyal further described the GST reforms as “one of the most transformative since Independence,” delivering Rs 2.5 lakh crore in relief. “Its multiplier effect is visible in the surge in consumer spending, increased investment, business activity, industry, and infrastructure. This momentum has propelled India to become the fastest-growing economy in the world,” he added.