Finance Minister Nirmala Sitharaman today said the government is convinced that the rate cut following GST 2.0 reforms is reaching the common people and that a major leg up is being witnessed in festive sales this year.

Sitharaman said the government is closely monitoring the passing on of price benefits to consumers by businesses, traders, and retailers.

"Since September 22, the finance ministry has been monitoring the passing of GST benefits. The ministry had specifically monitored 54 items from field formations. Price benefits have been passed on in all the monitored categories," Sitharaman said in a joint press conference on GST Bachat Utsav with Commerce Minister Piyush Goyal and Electronics and IT Minister Ashwini Vaishnaw.

"We are convinced that the rate reduction is reaching the common people. Three-wheeler dispatches grew 5.5% YoY. Two-wheeler sales are up by 21.6 lakh units. Passenger vehicle dispatches are also up in September," said Sitharaman.

"There has been a flurry of buying and selling in the nine days after September 22. Rate reduction has resulted in consumers increasing purchases. India's consumption story will continue," said Sitharaman.

She said dealers reported a doubling of AC sales on the very first day of GST 2.0 and mentioned that electronics retailers like Vijay Sales have witnessed a 20% hike in sales.

"Sales of food, personal care items, and nutritional items have gone up," said Sitharaman.

Commerce Minister Piyush Goyal said 2025 is a memorable year for the middle class, the common man, and farmers. "The income tax cut in the budget was a landmark decision. GST reforms have added to the festive flavour. GST 2.0 is the biggest reform after independence. Relief worth ₹2.5 lakh crore in indirect taxes will have a major multiplier effect," said Goyal.

"Amid global volatility, India is surging ahead. The IMF has revised India's growth projections upwards. The finance ministry and RBI have jointly tamed inflation. India has witnessed record-low inflation in the last eight years," Goyal added.

I&B Minister Ashwini Vaishnaw said record electronics sales have been witnessed this Navratri after the GST cuts. "Electronics sales have seen a 20-25% jump over last Navratri. Smartphones and smart TVs have seen major traction. GST reforms have led to deflation in food prices. Electronics manufacturing is witnessing double-digit CAGR growth," said Vaishnaw.

Vaishnaw added that due to GST reforms, consumption will significantly increase. "Consumption growth is likely to add 10% to domestic GDP," he added.

Both Sitharaman and Goyal pointed out that GST reforms are not in response to U.S. tariffs. Sitharaman said the government had been working on the GST reforms for one and a half years. "This was waiting to happen for quite some time, and it has happened," she said.