Union Commerce and Industry Minister Piyush Goyal has been actively addressing Goods and Services Tax (GST) related issues, emphasizing the importance of ensuring that the benefits of GST rate cuts reach consumers and working towards resolving the compensation cess concerns faced by automobile dealers.

Goyal has been urging industries to pass on the full benefits of GST rate cuts to consumers. He believes that this will boost domestic demand, create new business opportunities, and strengthen the foundation of India's economy. Speaking at an EEPC India event, Goyal stated that GST rate cuts, along with simplification, would provide more opportunities for small and large enterprises, leading to job creation, increased incomes, and higher spending, thereby triggering a virtuous cycle of growth for India. He has expressed confidence that no force in the world can stop India from emerging as a global superpower and that the benefits of GST rate cuts should reach every citizen to ensure inclusive growth and a stronger economy.

Goyal has also been addressing concerns raised by automobile dealers regarding the Goods and Services Tax (GST) compensation cess. The Federation of Automobile Dealers Associations (FADA) had written to Finance Minister Nirmala Sitharaman seeking clarity on the transitional treatment of accumulated compensation cess credits, which amount to over ₹2,500 crore. FADA warned of a potential liquidity crunch for dealerships ahead of the festive season and sought clarification on how dealerships could claim credit for taxes already paid for vehicles sold from September 22, 2025. Goyal has assured auto dealers that he will take up the GST compensation cess issue with the Finance Ministry to find an amicable solution.

Furthermore, Goyal has been encouraging the promotion of "swadeshi" products and has underlined the importance of after-sales service and continued support for customers, even when companies discontinue specific models or exit the Indian market. He has suggested a framework requiring companies operating in India to commit to maintaining a local presence and providing after-sales support for a defined period before closing operations to protect buyers and maintain the credibility of the automobile sector.

The GST Council has recently declared a new tax scheme that reduces the GST rate on certain cars from 28% to 18%, while electronic vehicles will continue to have a 5% GST rate. All automobile parts will have a uniform taxation rate of 18%. Goyal has emphasized that while the government will protect and support domestic manufacturers, there will also be fair competition to improve product quality and ensure customer choice. He believes that attracting global companies to the Indian market is important for expanding the market and demonstrating resilience in supply chains.

Overall, Piyush Goyal is actively working to ensure that the benefits of GST rate cuts are passed on to consumers and is addressing the concerns of various stakeholders to promote economic growth and stability. He is focused on creating a robust, inclusive, and sustainable economy, encouraging the consumption of Made-in-India products, and fostering fair competition in the market.