Union Finance Minister Nirmala Sitharaman on Friday said that consumers are enjoying the benefits of the new Goods and Services Tax (GST 2.0) regime, with several products becoming cheaper following the recent rate revisions. The reforms, aimed at simplifying the tax structure, have already resulted in lower prices for a range of goods and boosted retail demand during the festive season.
GST 2.0 simplifies structure
Sitharaman explained that the revamped GST, implemented from September 22, merged the earlier four-tier structure of 5%, 12%, 18%, and 28% into two slabs — 5% and 18%. She said that out of 320 items under review, 54 have seen price reductions after the tax changes. The move is part of the Centre’s effort to simplify indirect taxation and make compliance easier for small and medium businesses.
She noted that the government’s analysis shows the tax savings are being passed on to consumers through reduced retail prices. “Consumers are seeing direct benefits in their daily purchases. GST 2.0 has rationalised rates and simplified the filing process,” Sitharaman stated.
Consumer complaints monitored
The Finance Minister, however, acknowledged that some businesses have not fully passed on the benefits. So far, 3,169 complaints have been received from consumers claiming that certain sellers are charging pre-reform prices. Of these, 3,075 complaints have been forwarded to state authorities for verification, and 94 cases have been resolved.
Sitharaman emphasised that the government is closely monitoring the situation to ensure complete compliance with the new GST rates. She said enforcement teams are verifying price tags in retail outlets and e-commerce platforms to confirm that the benefits reach end-users.
Electronics sector shows strong response
Meanwhile, Electronics and IT Minister Ashwini Vaishnaw said the sector has recorded a strong performance during the festive period. “Electronics sales during Navratri increased by 20–25% compared to last year,” Vaishnaw said, attributing the growth to both improved consumer sentiment and lower prices following GST rate adjustments.
He highlighted that major product categories such as smartphones, televisions, and home appliances witnessed a surge in demand. Retailers have reported strong sales volumes, especially in Tier-2 and Tier-3 cities, suggesting that the reform has had a broad impact beyond metropolitan areas.
Industry and market impact
Industry analysts have welcomed the GST 2.0 rollout, calling it a significant step towards a more predictable tax environment. Retail associations said the simplified structure reduces confusion and compliance costs for traders. Economists also noted that such rationalisation could support India’s growth momentum by encouraging consumption in a period marked by inflationary concerns.
However, experts cautioned that for the long-term success of GST 2.0, monitoring mechanisms must ensure that benefits are transparently passed on to consumers. A sustained focus on implementation and quick grievance redressal would determine the overall credibility of the reform.
Conclusion
The initial response to GST 2.0 appears positive, with both consumers and the electronics industry reporting visible benefits. The government’s focus now is to ensure that the remaining cases of non-compliance are addressed swiftly so that all consumers can fully enjoy the intended relief from the simplified tax structure.