New Delhi : Union Commerce Minister Piyush Goyal on Friday said the government will soon notify a transitional arrangement to handle goods already stocked under the higher Goods and Services Tax (GST) slab. The deadline for the new two-slab tax slab has been set as September 22 and dealers are unsure about how to manage input tax credit (ITC) for goods stocked under the old and higher GST slabs.
Addressing a press conference, the Union Minister said the government will ensure that the full benefit of the rate cut is passed on to consumers by the industry. Union Minister Piyush Goyal said the decision to cut GST is a historic step taken under the leadership of PM Modi, which will benefit 140 crore people of the country.
He said the GST reform should be seen as one of the biggest transformative decisions, which will take the country’s economy to new heights in the coming days.
Talking to the media, he said, “The youth of the country, women, farmers, MSMEs, consumers of every class, shopkeepers and entrepreneurs, everyone is going to get a very big gift on the first day of Navratri on 22 September.”
Regarding the GST rate cut, Union Minister Goyal said that the prices of every item related to everyday life have been reduced and the process has also been simplified. The entire chain of man-made textiles has been brought under 5 percent GST rate. He said that this decision should be seen as a positive step of PM Modi.
Union Minister Goyal said, “This is an important decision to strengthen the country’s economy. Also, it is important in taking the country’s development journey forward. Tax on medicines will be reduced. GST on life-saving drugs has been made zero. Apart from medical devices, health and life insurance will become cheaper.” He further said that GST has been reduced on soap, toothpaste, food items, cycles, bikes, furniture, clothes, shoes, TV, fridge, AC.
Union Minister Goyal described GST 2.0 as a cycle of growth and said, “In a way, it is an effort to strengthen the country’s economic condition. This will increase demand. If demand increases, investment in India will increase. Investment will create new employment opportunities. The income of entrepreneurs and businessmen will increase. If income increases, demand will increase again. That is, it can be seen as a cycle of growth. Its multiplier effect can be seen on a large scale.