GST 2.0: Tax Cut Benefits Reach 75% of Vehicle Buyers, Lagging in Appliances
A survey tracking the early impact of the Goods and Services Tax (GST) 2.0 rate rationalization found a high degree of benefit transmission to consumers in the vehicle and appliance sectors, though the transmission was notably higher for automobiles.
Key Findings on Benefit Transmission
| Product Segment | Consumers Receiving Full Tax Cut Benefit |
| Vehicles (Cars, Two-wheelers) | 75% |
| Appliances (White Goods, Electronics) | 65% |
- Vehicle Sector Success: Three-quarters of consumers reported receiving the full benefit of the GST rate cuts on vehicles. This high transmission rate is attributed to strong market competition and the willingness of Original Equipment Manufacturers (OEMs) and dealers to quickly pass on the savings to boost sales.
- Appliance Sector Lag: While most consumers (65%) received the benefit on appliances, the lower percentage compared to vehicles suggests a greater degree of friction in the supply chain for white goods and electronics, possibly due to existing inventory with old tax rates or anti-profiteering behavior by some retailers.
- Overall Affordability: The high transmission rate in these major durable goods sectors confirms that the GST 2.0 reforms successfully improved affordability and stimulated consumer spending on big-ticket items during the initial rollout period.
Source :- News 18