New Delhi, December 1: The impact of GST reforms has been directly visible on consumption across the country. The taxable value of goods supplied under GST has increased by 15 percent during the September-October period. In the same period last financial year, this figure was 8.6 percent. This information was given on Monday citing government sources.
Government sources said that the increase in taxable value of goods supply shows that the reduction in GST rates has led to strong improvement in consumption.
The government had also launched Bachat Utsav to make people aware of the benefits of GST. This has helped in increasing consumption.
According to sources, the sectors that have seen strong growth include FMCG, pharma, food products, automobile, medical devices and textiles.
The strengthening of these sectors shows that the reduction in GST has boosted customer spending.
Government sources said that this growth is in terms of value, as GST rates were lower, so the growth in terms of volume would be even higher. This shows that next-generation GST reforms have helped boost consumption on a large scale. Along with this, the industry has passed on GST benefits to the end consumer.
According to sources, GDP private consumption data for the review period will be released much later. Due to this, GST taxable value serves as the most reliable real-time proxy for consumption and the current numbers clearly indicate continued demand expansion.
Under GST reforms implemented in September, the government had reduced the number of slabs from four – 5 percent, 12 percent, 18 percent and 28 percent to two – 5 percent and 18 percent. Along with this, 40 percent tax has been imposed on luxury and sin goods. Additionally, the government had reduced cess to zero on many items.
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