GENERAL21 Sept 2026
GST rate cuts have been offset by ‘galloping’ inflation: Congress
In September 2025, the government cut Goods and Services Tax (GST) rates on many goods. Now, Congress leader Jairam Ramesh says rising inflation has wiped out those gains. Several consumer products are back near pre-cut prices, and consumption hasn't risen much. Car sales improved, apparel sales did not. If you run a business, review your pricing and margins before assuming lower rates mean stronger demand.
Key Statutory Highlights
- The Congress said the GST rate cuts announced in September 2025 are being neutralised by galloping inflation.
- Jairam Ramesh said the cuts were long overdue, but their impact on boosting consumption has been mixed at best.
- He said automobile sales benefited while apparel sales did not, and prices of several consumer goods returned to nearly pre-cut levels within a year.
Actionable Advice for Taxpayers / Founders:If you run a business, compare your current selling prices and margins with last year's numbers and track your own cost changes, instead of assuming that a GST rate cut alone will lower prices or lift demand.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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