GST Bachat Utsav: Rate cuts making daily living more affordable

GST Bachat Utsav: Rate Cuts Making Daily Living More Affordable

Key Points:

1. Overview of the Initiative:
   • The GST Bachat Utsav was announced by Prime Minister Narendra Modi and commenced on September 22, 2025.
   • It aims to provide relief to consumers and businesses through reduction in GST rates on essential goods and services.
   • The initiative is part of the government’s broader effort to make daily living more affordable and stimulate economic activity.
2. Impact on Delhi’s Business Community:
   • The reform has brought significant benefits to traders, service providers, and small manufacturers in Delhi.
   • Lower tax rates have improved ease of doing business, especially in sectors like automobiles, spare parts, hospitality, and tourism.
3. Benefits to Automobile and Spare Parts Sector:
   • The GST on auto parts has been reduced from 28% to 18%.
   • This has lowered maintenance and repair costs for vehicle owners.
   • It has also improved profit margins for auto parts dealers in areas such as Karol Bagh and Kashmere Gate, major automobile hubs in Delhi.
4. Relief for Hospitality and Tourism Sector:
   • Hotel rooms priced below ₹7,500 per night now attract 5% GST, down from 12% earlier.
   • This reduction is expected to boost tourism, increase hotel occupancy, and create more jobs in the hospitality sector.
   • The timing aligns with the festive season, offering immediate consumer benefits and promoting local tourism.
5. Broader Economic Significance:
   • The GST rate cuts are designed to boost consumption, enhance affordability, and stimulate domestic demand.
   • The initiative is expected to have long-term benefits by fostering market growth, improving business sentiment, and increasing employment opportunities.

Static Data for Revision:

• Full Form: GST – Goods and Services Tax
• Implemented on: July 1, 2017
• Constitutional Basis: Article 279A – GST Council
• Chairperson of GST Council: Union Finance Minister
• GST Council Composition: Union Finance Minister (Chairperson), Minister of State for Finance, and State Finance Ministers
  
  Updated - October 16, 2025 10:11 AM | News On Air