GST Reforms Spark Festive Boom, Says Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Friday said that the government’s recent Goods and Services Tax (GST) reforms have started yielding results, with the benefits being passed on to consumers and resulting in a surge in sales of vehicles and electronic goods ahead of Diwali.

Addressing a press conference alongside Commerce Minister Piyush Goyal and IT Minister Ashwini Vaishnaw, Sitharaman said the “GST Bachat Utsav” initiative has ensured that price reductions under the revised tax structure are directly benefiting the common man. “We monitored 54 essential and daily-use items and found that in all cases, the tax savings were fully transferred to consumers,” she said, adding that some businesses had gone beyond the mandated rate cuts.

The revised GST structure, which came into effect on September 22, slashed taxes on food items, consumer durables and household goods such as televisions, air conditioners, and refrigerators. The finance minister noted that the reforms have revived market confidence and boosted festive demand across sectors.

Official data shows that the automobile sector witnessed strong momentum since the tax overhaul. Two-wheeler sales touched 21.6 lakh units in September, while passenger vehicle dispatches reached 3.72 lakh units. Three-wheeler sales also registered a 5.5% year-on-year rise. In the electronics segment, air-conditioner sales reportedly doubled, and television sales climbed by 30–35% within weeks of the tax cuts.

Commerce Minister Piyush Goyal described the GST overhaul as “India’s most significant tax reform since Independence,” crediting it for stabilising prices and stimulating demand amid global economic uncertainty and rising US tariffs. Meanwhile, IT Minister Ashwini Vaishnaw projected that consumer electronics spending could touch ₹20 lakh crore this year, driven by growing domestic demand. The government expressed confidence that the GST reforms will strengthen India’s growth momentum through the festive season.