Finance Minister Nirmala Sitharaman is confident of a positive impact of the GST 2.0 reforms on the common persons, saying that the industry has assured the government it will pass on the benefits.
"Industry has assured us they will pass it on," Sitharaman said, while speaking to India Today, adding that the government will not tolerate any negligence in passing on the benefits.
The Central Board of Indirect Taxes and Customs (CBIC), Sitharaman explained, will spend about 45 days to assess whether actual consumer prices are reflecting the benefits of the GST cuts.
On Sept 3, the GST Council carried out a massive GST rejig, reducing taxes on most consumer goods and introducing a simpler two slab regime, comprising only 5% and 18% as the tax rates. However, a 40% levy will be imposed on select luxury and 'sin' goods. The new rates will be effective Sept 22.
The GST rejig is aimed at improving consumption and is likely to serve as a massive boost to FMCG, which has been reeling from demand slowdown.
Sitharaman said that the GST cuts are "pro-farmers and pro-MSME", aimed at improving the nation's small businesses and livelihoods.
Reacting to the criticism from Opposition parties over the alleged delay in GST overhaul, the finance minister quipped that those who once viewed GST as 'Gabbar Singh Tax' are now trying to take credit for GST 2.0.
However, when asked about implementing a single uniform GST rate, Nirmala Sitharaman admitted now is 'not the time' and that one uniform slab can only be implemented once 'the nation reaches a certain level of development'.
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