Industry must pass on benefits of GST rate cut to consumers: Piyush Goyal

Union Commerce and Industry Minister Piyush Goyal on Thursday described the reduction in GST rates as "game-changing" and the "biggest reform" since independence, as he asked the industry to pass on the full benefit to consumers.

The minister said the GST reforms would boost demand in almost all sectors and support the economic growth of the country.

He also asked the industry to promote Made in India in a big way.

Addressing an event here, the minister said the reduction in GST would benefit every consumer.

"Yesterday's reform in indirect taxes in GST, coming on the back of several initiatives over the last 11 years, is transformational in nature, significantly impacting the pharma sector, significantly impacting so many sectors, right from the farmer until our MSMEs," he said.

"Every stakeholder in the country, every consumer, stands to benefit," Goyal added.

Terming the GST reforms as "game-changing", the minister said the move would play an important role in the months and years to come in the journey of becoming a developed country by 2047.

Goyal asked the industry to "pass on all these benefits of GST to the consumers."  Speaking on the sidelines, Goyal gave credit to the Prime Minister for the transformative and path-breaking reform in the goods and services tax.

Prime Minister Narendra Modi always fulfils promises, he added.

"What we thought could be big has turned out to be the biggest ever reform that India has seen since independence. Besides many dimensions, consumers will benefit in a very big way with the reduction in taxes across the board, on almost all items of our day-to-day needs," Goyal said.

Besides the reduction in GST rates, the minister said the changes made in the process and procedure will contribute to the ease of doing business.

"These lower rates will support the growth of demand and industry. The scale of operation in the country will grow by leaps and bounds. Greater demand will lead to greater investment, greater jobs, and the virtuous cycle of growth will get a leg up and a big boost," he said.

This Diwali gift will contribute to ease of living, better quality of life for 1.4 billion citizens, Goyal said.

Asked about the Opposition's criticism that this reform should have been brought 8 years back, the senior BJP leader attacked the Congress party for spreading negativity at a time when India is the fastest growing economy in the world.

The minister pointed out that the opposition was in its current state because of this negativity only. "Sadly, just like Rahul Gandhi, does not understand that the world's fastest growing large economy at 7.8 per cent growth in the first quarter is a matter of delight, joy and celebration," Goyal said.

"Rahul Gandhi calls India a dead economy, despite being the world's fastest-growing large economy. This is the negative thinking of a certain set of people, and I condemn this kind of negativity," he added.

The minister attended the India MedTech Expo, Bharat Nutraverse Expo.