Nirmala Sitharaman Demands GST Cuts Reach Consumers
Finance Minister Nirmala Sitharaman said businesses must ensure that GST rate reductions are reflected in retail prices, not absorbed as extra profits. She added that the government has put in place a monitoring system to track compliance and will intervene where needed.
GST 2.0 Structure
The new GST framework, effective from September 22, simplifies the system into two main slabs of 5% and 18%. A 40% rate remains for luxury and “sin” goods, while essential sectors such as life and health insurance have been exempted.
Festive Season Monitoring
The rollout coincides with the beginning of Navratri, a high-spending festive season. Sitharaman said ministries are collecting market data and will use anti-profiteering measures if companies fail to pass on the benefits to consumers.
Industry Response
Some sectors have already reacted to the cuts. Raymond Lifestyle announced price reductions on two-thirds of its products under ₹2,500. Footwear stocks also rose by up to 7% after the GST rate on affordable pairs was reduced to 5%.
