GST Reform A Huge Victory For Every Citizen in Country: Nirmala Sitharaman
The Centre, however, expects the simplified structure to immediately bring down prices of essential goods, spur consumption and boost economic activity
New Delhi/Chennai: Ahead of the implementation of the next-gen direct tax regime, Union finance minister Nirmala Sitharaman on Sunday said that the reform in goods and services tax (GST) is a huge victory for each and every citizen of the country and it has reduced the tax burden on people. The Centre, however, expects the simplified structure to immediately bring down prices of essential goods, spur consumption and boost economic activity.
“Earlier, GST had four categories. Now, we have simplified it into two slabs - 5 per cent and 18 per cent. Items that were taxed at 12 per cent and 18 per cent have largely been moved to the lower 5 per cent bracket. For certain essentials, tax has been reduced to zero. This reform will significantly benefit all 1.4 billion Indians," Sitharaman said, while addressing the joint conclave of trade and industries association in Chennai.
Several government officials have pointed out that the timing of the announcement was deliberate, keeping in mind the major festivals across regions. “While Diwali drives consumer demand for clothing and household goods in the south, Navratri and Durga Puja boost purchases in the north. The GST Council, with representatives from all states and Union Territories, unanimously approved the reform,” they said.
The finance minister also highlighted the impact of the reforms, noting that GST benefits now touch every aspect of daily life, ‘from the moment people wake up to when they go to bed. A major move includes slashing GST on 99 per cent of goods previously taxed at 12 per cent to just 5 per cent. The new GST reforms will come into effect on September 22.
