Finance Minister Nirmala Sitharaman revealed on Tuesday that the revolutionary Next Generation GST reforms rolled out on September 22, 2025, have unleashed an unprecedented consumption boom across sectors, with air-conditioner sales literally doubling and large-screen television sales jumping 30-35% within weeks. Speaking at an event in Coimbatore, she declared that the drastic simplification of rates and classifications has directly put more money in people's pockets, triggering what industry leaders describe as the biggest sales surge in years.

The new GST structure has been slashed to essentially just two mainstream rates — 5% and 18% — while retaining higher levies only on super-luxury and sin goods like tobacco and cigarettes. Sitharaman emphasised that Prime Minister Narendra Modi personally pushed for these reforms to ensure small traders and rural consumers benefit the most, leading to multiple rounds of rate cuts and removal of confusing product classifications that had choked businesses for years.

The impact was immediate and dramatic: Maruti Suzuki alone recorded over 80,000 fresh enquiries across its dealership network the very next day after the reforms, while e-commerce platforms reported a solid 20% jump in sales. Manufacturers of 43-inch and 55-inch televisions told the Finance Minister that consumers who had been postponing upgrades suddenly rushed to buy bigger sets, proving that lower taxes are translating directly into higher disposable income and aspirational purchases.

Also Read: Nirmala Sitharaman Begins Pre-Budget Consultations for Union Budget 2026-27 with Economists

During her visit to a Coimbatore supermarket, customers and employees personally told Sitharaman that everyday essentials like shampoos, toothpastes, and packaged food items have become noticeably cheaper, leading to higher footfalls and bigger shopping baskets. Store staff confirmed that since September 22, overall sales volume and customer traffic have shot up significantly, validating the government's claim that simplified and lower GST is putting money back into the common man's hands.

Sitharaman assured traders that her Ministry will continue reviewing and further simplifying the GST system, reiterating that the era of complex compliance and high tax burden is over. With consumer durables, automobiles, and e-commerce all reporting record-breaking numbers in less than two months, the Next Generation GST reforms have emerged as one of the most successful economic interventions in recent times, delivering tangible benefits from rural kirana stores to urban malls.

Also Read: Nirmala Sitharaman Says India-US Trade Deal in Final Stages: “Efforts Being Made, Results Awaited”