6 September, Saturday: Starting from September 22, India will now see new slabs of 5% and 18% for GST as declared by Union Finance Minister Nirmala Sitharaman in the 56th meeting of the GST Council, focusing primarily on improving the lives of the common man and ensuring ease of doing business for all.
With GST 2.0 rolled out, she voiced optimism that consumer demand would pick up after September 22. According to her, several industries, including automobiles and consumer durables, have reported weak bookings as customers defer purchases. “Industry representatives have indicated that sales are likely to revive after September 22, similar to the surge in spending seen after the Covid period, often described as ‘revenge buying,’” she noted.
Revamping GST
She is positive that the economy will be fueled by the growth in consumption. Amidst all speculation about whether the collection of revenue will be hit due to recent changes, the Finance Minister looks forward to revamping the critical non-financial regulators like the Competition Commission of India (CCI) and the Food Safety and Standards Authority of India (FSSAI). Awaiting reform over a long period of time, a regulatory reform committee is promised to look into the regulations, certification, licenses, and permissions. This agenda gains attention after the new declaration, as the government aims to foster ease of doing business, strengthening trust-oriented economic governance.
The resurgence in matters like inspections and compliance remains at the core of this agenda. Going forward, the States will be encouraged in this endeavour as a promise to boost their economy that “all the money was coming from the same pool," she said. The committee expected to make recommendations within a year, amidst observation on how the new GST reform benefits the needs of the common man. Although rejuvenated, Sitharaman stresses that this is like taking a tough exam, awaiting response from the states and their concern for revenue.
