According to a study released by the Puducherry administration’s commercial tax department on Thursday, consumption has increased since the Goods and Services Tax changes were put into place. The Central Government’s “next generation GST reforms, effective from September 22 marked a major simplification of the country’s indirect tax system,” according to a statement from Yasin M. Choudhary, Secretary-cum-Commissioner of State Tax, Puducherry.
A “major upward trajectory in the Union Territory of Puducherry” in economic activity has been observed since the reforms, he added, according to a department of commercial tax analysis. Compared to the same period last year, vehicle registrations have climbed by 35%, with automobile registrations alone increasing by 37%, according to data from the transport department.
Three-wheeler registrations surged by 38%, while two-wheeler sales increased by 35%. The number of buses and goods trucks registered increased by 50% and 53%, respectively. Sales of a sample basket of fast-moving consumer products have increased by 15%, according to reports from major department stores.
Commonly used products experienced notable growth, with sales of toothpaste increasing 10%, ghee increasing 49%, and hair oil increasing 48%. “These figures point to renewed consumer confidence and higher spending in the wake of the GST reforms,” said Choudhary. He stated that the Commercial Tax Department was “actively geared up to support the smooth implementation of the GST reforms through a series of awareness and outreach programmes involving trade and industry associations, GST practitioners, and tax professionals” .
These efforts have concentrated on elucidating the reform measures, making procedural changes more understandable, and making sure that “the benefits of the reduction and simplification reach businesses and consumers alike.” According to Choudhary, the department would keep an eye on the effects of the GST rate changes on the economy and make sure that the public benefits from lower taxes.
“With the onset of the festive season combined with the momentum generated by GST reforms and rate reductions, it is expected that tax buoyancy and revenue growth will further strengthen in the months ahead,” he said, adding that the department remains dedicated to “continued outreach, transparency, and close engagement with all stakeholders to sustain this positive trend.”