GST Rate Cut Impact: Government Monitoring 54 Items To Ensure Benefits Reach Consumers: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said the government is closely monitoring 54 items to ensure that the benefits of the recent Goods and Services Tax (GST) rate cuts are being passed on to consumers. She said several products have seen a greater-than-expected reduction in prices since the reforms came into effect on Sept. 22.

Sitharaman said inputs from zonal offices show that rate reductions have reached consumers across most categories. “The benefit has been passed in all 54 items. Only on Portland cement (PPC), benefits have not been passed at the expected scale due to an input tax discrepancy,” she said at a joint press conference alonside Union Ministers Piyush Goyal and Ashwini Vaishnav.

She added that items such as milk products, shampoos, household goods, tricycles, solar cookers and umbrellas have seen actual price cuts exceeding intended levels.

The finance minister said shampoo prices dropped by 12.36% compared to the intended 11%, while household articles saw a 10.24% reduction against the expected 6.25%. “On every such item, the benefits are being passed on to the consumer. Rate reductions are reaching the common people,” Sitharaman said.

She said retail data indicate a strong market response following the GST changes, with sales of electronics, vehicles and consumer goods rising sharply. Tractor sales more than doubled in September, while major manufacturers reported a 30–35% increase in television sales on the first day of the rollout. Vijay Sales recorded a 20% rise in sales during Navaratri, and LG Electronics saw a significant surge, she said.

Sitharaman said the tax reforms are not limited to the festive season and are aimed at creating a more efficient system. “We are seeing better tax collections, close to Rs 2 lakh crore per month. Better collections give room to pass on more benefits,” she said.

The finance minister added that engagement with retailers will continue to ensure full compliance. Of 3,169 complaints received on non-passage of GST benefits, 3,075 have been forwarded to the Central Board of Indirect Taxes and Customs (CBIC), while 94 were resolved by the Consumer Affairs Ministry. She said most complaints stemmed from a lack of awareness about specific GST cuts.

Sitharaman said the environment in the market after the GST reforms remains positive and the government expects consumption growth to continue beyond the festive season.