Full benefit of GST rate cuts must be passed on to consumers, Piyush Goyal says
GST rate cuts will boost domestic demand, which, in turn, will create a “virtuous cycle of growth”, Union Minister Piyush Goyal says.
Union Ministry Piyush Goyal has asked India Inc. to pass on the full benefit of GST rate cuts to fuel consumption in the world's fourth largest economy.
“The GST rate cuts—along with simplification—will boost domestic demand, small and large enterprises will get access to more opportunities…,” the union minister for commerce and industry said at an EEPC event in New Delhi on Monday. “New avenues for employment will be generated, earnings will rise, which will lead to higher spending.”
That, according to him, will create a “virtuous cycle of growth” to take India forward. No power in the world will be able to stop India's emergence as a global superpower, he said.
Therefore, the benefits of GST rate cuts should be passed on to consumers, to ensure that growth reaches every citizen and strengthens the foundations of India's economy, Goyal said.
On Thursday (4 September 2025), India cut GST rates on hundreds of items in the biggest indirect tax overhaul since 1 July 2017, when Goods and Services Tax was first introduced. Soaps to small cars are set get cheaper by at least 10 percentage points from 22 September.
Swadeshi Drive
According to Goyal, the Indian economy would become the third largest in the world in the next two to three years. By 2047, it would become an economy with a gross domestic product of at least $30 trillion.
“Therefore, we must all accept the call to action of Atmanirbhar Bharat which is in front of us,” he said. “No matter how much instability arises in the global situation... India's confidence is so strong today we do not get scared or bow to any challenge.”
Therefore, apart from passing on GST benefits, businesses should focus on Made-in-India products, as that would noy only help India's growth but also strengthen its financial security. Businesses that are import dependent can look into products that can be procured from India, he said.
With inputs from PTI.
