India, Sept. 5 -- As the US tariffs kick in and impact India's trade with its largest export destination, the Goods and Services Tax (GST) Council took a timely decision to lower GST rates for a considerable number of items, to boost domestic demand. Lower GST rates are expected to be passed on to consumers in the form of lower prices, which will provide them with additional purchasing power.

Lifting domestic demand is likely to offset falling external demand for Indian goods. The course expected now is goods with new, lower prices will hit the market stacks once the stock of goods lying as inventories in different stages of trade/distribution is exhausted. It is expected that the Union government will soon notify the new tax rates under...