GST 2.0 benefits will be passed on to consumers: Piyush Goyal says PM Modi has built trust with industry

Union Commerce Minister Piyush Goyal’s interview on Thursday came shortly after the GST Council, chaired by Finance Minister Nirmala Sitharaman, approved major tax cuts. Effective September 22, GST will be simplified into two main slabs of 5 per cent and 18 per cent, replacing the current 12 per cent and 28 per cent rates, with a special 40 per cent slab for luxury and sin goods.

Speaking to CNN-News18 Editor-in-Chief Rahul Joshi, Goyal praised the government’s move. Congratulating Prime Minister Narendra Modi for transformative GST reforms, the Union commerce minister said, “Ease of doing business is the pathway to a developed economy.”

Long-term vision for growth

Laying out a long-term vision, he said, “Prime Minister Narendra Modi is working to make India a $30 trillion economy by 2047.”

He further lauded PM Modi’s vision for self-reliance, saying the country had survived the Covid-19 pandemic and remained among the fastest growing economies in the last four years. According to Goyal, “PM Modi had taken a broken economy and made it among the top economies of the world.”

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Benefits for the middle class

On the immediate benefits of the GST cuts, Goyal said\, “GST rates will make it easier for middle class to build homes.” He explained that reduced rates would help the middle class build homes more affordably and added that two-wheelers would also become more accessible to aspiring families.

He added that the new reforms in GST would also generate employment opportunities across sectors.

PM Modi’s leadership

Highlighting the prime minister’s relationship with industry, Goyal remarked, “PM Modi has trusted industries, never let them down.” He said Indian industries have always received the prime minister’s support, and in turn, the people have placed their trust in him.

Strain in India-US ties

The minister also addressed the strain in ties between India and the United States after President Trump imposed 50 per cent tariffs on Indian imports, citing India’s purchase of Russian oil. Goyal reiterated his earlier position that India would not “work under pressure to close agreements in haste.”