GST Reforms to Boost Economy: PM

New Delhi: Prime Minister Narendra Modi on Thursday hailed GST 2.0 as a double dose of support and growth for the nation and hinted at a series of reforms to transform India into a self-reliant nation.

In an interaction with the winners of the National Teachers Awards, Modi said, “Without timely changes, we cannot give our country its rightful place in today's global context. I had said from the Red Fort on 15 August this time that it is crucial to undertake next-generation reforms to make India self-reliant. I had also promised the countrymen that there would be a double blast of happiness before this Diwali and Chhath Puja.”

The Prime Minister's remarks came a day after the GST Council approved a complete overhaul of the Goods and Services Tax (GST) regime with a two-tier rate structure of 5 and 18 per cent.

Of the 453 goods where the GST rate has changed, SBI Research Report said 413 goods saw a decrease in rates, while only 40 goods witnessed an increase in rates. Almost 295 goods now have a new GST rate of 5 per cent or zero rate from earlier 12 per cent, the report said.

Modi also slammed the previous Congress governments for levying high taxes on kitchen essentials and items related to farming and agriculture, or even medicines.

“Had that regime continued, you would have been paying `20-25 tax on every purchase worth `100. But the aim of our government is to ensure maximum savings in the lives of common people, and to make people's lives better,” the prime minister said.

He likened the GST reforms to adding 'Panch Ratna' (five gems) — simpler tax system, better quality of life for citizens, boost for consumption and growth, encouraging investments and job creation through ease of doing business and strengthening cooperative federalism for developed India — to the country's economy.