GST rate cuts boost festive sales, reflect positive market sentiment: FM Sitharaman

New Delhi, Oct 24 (IANS) India’s festive retail sales have reached an all-time high this year, highlighting the impact of recent economic policies, including GST rate rationalisation, Union Finance Minister Nirmala Sitharaman said on Friday.

Speaking at the inaugural event of the new CGST Bhawan in Ghaziabad, FM Sitharaman said that the next generation GST reforms will make this system even more efficient, equitable and growth-oriented.

“I am confident that with continued reforms, dedication and teamwork, we will reach new heights in revenue, compliance and service delivery,” the Finance Minister said.

According to the Confederation of All India Traders (CAIT), retail sales during this Diwali hit Rs 6.05 lakh crore -- marking a 25 per cent rise over last year’s Rs 4.25 lakh crore.

Of the total sales, about Rs 5.40 lakh crore was spent on goods and Rs 65,000 crore on services, making this the largest Diwali business in India’s trading history.

“What do these numbers tell us? They tell us that our economic policies -- including the recent GST rate rationalisation -- is having a meaningful impact,” FM Sitharaman said.

“Keep up the good work, maintain the momentum of reforms, and always remember that our ultimate goal is to make life easier for the honest taxpayer,” the Finance Minister added.

FM Sitharaman added that the next generation GST must feel different to the taxpayer. They should feel that they are honourably treated, as they are the taxpayers to the nation.

“So, the ‘#GSTBachatUtsav which was launched by Prime Minister Narendra Modi was indeed a ‘Double Diwali’,” the minister said.

E-commerce also performed well, recording a 24 per cent year-on-year (YoY) growth in volumes, while gross merchandise value increased by 23 per cent.

CAIT noted that around 72 per cent of traders surveyed credited the GST rate cuts on daily-use items, footwear, home decor, and consumer durables as a major factor driving higher sales this year.

--IANS

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