Puducherry witnesses surge in consumption, vehicle registrations after GST reforms: Govt

Puducherry, Oct 9 (PTI) The commercial tax department of the Puducherry administration has reported a rise in consumption following the implementation of Goods and Services Tax (GST) reforms, an official said on Thursday.

Yasin M Choudhary, Secretary-cum-Commissioner of State Tax, Puducherry, said in a statement that the Central Government’s "next generation GST reforms, effective from September 22, marked a major simplification of the country’s indirect tax system." He added that an analysis by the department of commercial tax indicates that economic activity has seen a "major upward trajectory in the Union Territory of Puducherry" since the reforms.

Data from the transport department shows that vehicle registrations have increased by 35 per cent, with car registrations alone rising by 37 per cent compared to the same period last year. Two-wheeler sales rose 35 per cent, while three-wheeler registrations increased by 38 per cent. Registrations of goods vehicles and buses went up by 53 per cent and 50 per cent respectively.

Reports from major departmental stores also show a 15 per cent rise in sales of a representative basket of fast-moving consumer goods. Commonly used items saw significant growth, with hair oil sales up 48 per cent, ghee up 49 per cent, and toothpaste rising 10 per cent.

"These figures point to renewed consumer confidence and higher spending in the wake of the GST reforms," Choudhary said.

He added that the Commercial Tax Department has "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 initiatives have focused on explaining the reform measures, clarifying procedural changes, and ensuring that "the benefits of the reduction and simplification reach businesses and consumers alike." Choudhary said the department will continue to monitor the economic impact of the GST rate changes and ensure that the benefits of lower taxes are effectively passed on to the public.

"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 committed to "continued outreach, transparency, and close engagement with all stakeholders to sustain this positive trend." PTI COR SSK