India, Oct. 19 -- The next-generation GST reforms have triggered a sharp reduction in consumer prices and accelerated a "virtuous cycle" of growth through consumption-led demand, Union finance minister Nirmala Sitharaman on Saturday, and added that the government's monitoring of prices of 54 daily-use items shows the industry has passed on benefits to consumers.

The GST Council on September 3 approved sweeping rate reductions on items spanning household essentials, medicines, automobiles and appliances as it pruned the tax structure from four slabs to essentially two. Estimated at the time to lead to a Rs.48,000 crore implication on the exchequer, the gamble appears to have worked with the government estimating consumption surging nearly...