New Delhi [India], September 4 (ANI): Industries across sectors of the economy have given assurances to the Central government that the entire benefit of the reforms to the Goods and Services Tax (GST) will be passed on to the common man, Union Minister of Commerce and Industry Piyush Goyal said on Thursday.

In an interview with ANI, the Union Minister mentioned that he is 'confident' in industry meeting expectations across different levels, big or small, while the Department of Consumer Affairs and Finance keeps an eye on the companies too.

'We have received assurance from all sectors of industry, at different levels, big and small, have committed that we will pass on the entire benefit to the common man. We are very confident that they will meet our expectations. The Modi government always trusts stakeholders just as the people of India trust Prime Minister Narendra Modi,' Goyal told ANI here.

The recent decision of reducing the Goods and Services Tax (GST) tax slabs to 5 per cent and 18 per cent is the biggest transformational reform that the country has seen in decades, the Union Commerce and Industry Minister added.

'So I think they will certainly pass it on, and we have sought a commitment from everybody, which we have received. Obviously, there are also mechanisms in place to monitor it, and the Consumer Affairs Department and Finance will certainly be involved in this process. But I'm very confident that industry will not let us down because for them, lower duty, lower rates will mean a pick-up in demand and greater business and the benefit of economies of scale,' Goyal added.

Calling it a 'Diwali gift' to people by Prime Minister Narendra Modi, he said that the GST reform will boost consumption, improve ease of doing business, and help the common person meet their aspirations for better things in life.

'The GST reforms reduction rationalisation is encompassing the entire gamut of goods and services that touch a common man, that are required by farmers, that will give a good boost to the MSME sectors, our youth, our women, everybody stands to benefit. It's very holistic, very comprehensive. This, to my mind, is Prime Minister Narendra Modi's gift to the people on the eve of Diwali. It will be implemented on 22nd September, the first day of Navratri. And clearly, it's the biggest transformational reform that we have seen in decades. This will certainly give a big boost to consumption,' Goyal told ANI.

According to Minister Goyal, the target of meeting 14 per cent compensation cess, which was collected to compensate states for loss of revenue from the implementation of GST, will be completed in November. This growth has allowed Prime Minister Narendra Modi some 'elbow room' to abolish it from most product except for goods like chewing tobacco, beedi, and cigarettes.

'Since the compensation was no longer required, having met the 14 % compensation growth every year to the states by November or so, it will not be required, his will has given him the elbow room and Prime Minister Modi decided that all of it should go back to the people of India and it's a game-changing transformation,' he said.

Training his guns at the 'naysayers' criticising the reform to the GST slabs, the union minister said that some people are simply 'uniformed to the needs of Indian society.'

'We have a large section of people who need to receive goods at a very low price. So we have kept the 5 per cent GST rate, and all the goods of the common man are at 5 per cent. Then there is a set of goods that can afford to have an 18% rate. There aren't too many now. Those help to subsidise the poor people's goods. And the ones at 40 per cent are those that I'm certain you or anybody else will not want to make cheaper,' he mentioned.

'Particularly considering the health element, Healthcare has a lot of relief. So many life-saving drugs have become zero-duty, so many medical devices have come down in duty, so many other medicines are down, health insurance has come down to 0 per cent on insurance policies, and life insurance policies are at 0% from 18 per cent,' he added.

The announcement of the revised GST tax slabs also come amid pressure from the United States imposing tariffs on imported Indian goods, with Minister Goyal assuring that a 'equitable, fair and balanced agreement' will be reached.

'I don't think there's any need to panic. We should allow the negotiations to happen. We continue to have very good relations with the United States, and I'm sure that we'll be able to resolve some of these issues and come to an equitable, fair and balanced agreement,' he said.

However, he mentioned that no timeline has been set for negotiation, as India is looking for the long term, which requires patience, adding, 'No, there's never a timeline in negotiation. You should do it patiently because you are working for the long term. You have to look at the future and decide what you want. Time will tell whether it works out well in a short time frame or a longer time frame.'

The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates. The decision was announced by Union Finance Minister Nirmala Sitharaman on September 3, after she chaired the GST council meet. This has reduced the previous GST slabs from 5% slab consists of essential goods and services, including food and kitchen items; agricultural equipment; handicrafts and small industries; and also medical equipment and diagnostic kits. While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services.

Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Notably, some essential services and educational items are fully exempt from GST, including individual health, family floater, and life insurance. (ANI)