Next-generation GST reforms represent a significant step towards simplifying India’s indirect tax system

The next-generation GST reforms represent a significant step towards simplifying India’s indirect tax system. Now people can avail the benefit of GST reforms, which already came into effect from the 22nd of this month. Under the new structure, the GST council has simplified the earlier four-tier structure of 5, 12, 18 and 28 per cent into a two-tier structure of 5 per cent and 18 per cent. By reducing the tax rate on a wide range of goods and services, the reforms are bringing substantial relief to citizens. A report:
 
The government has made significant tax reduction in the healthcare sector to provide relief to the common man. The GST rates on Health and life insurance premiums, which earlier attracted 18 per cent, have now been made completely tax-free. This move is expected to encourage wider adoption of health insurance, reducing out-of-pocket medical expenses for middle-class families.
 
 
The government has also waived off taxes on 33 life-saving drugs used for the treatment of cancer and severe chronic diseases to provide affordable and long-term treatments for chronic illnesses. Along with that, the GST on various medicines and medical equipment such as gauze, bandages, diagnostic kits, glucometers and thermometers have also been slashed to 5 per cent from the previously taxed 12 percent. Talking to the, Akashvani News, Suyogya Shukla, a resident of Lucknow Uttar Pradesh, said that the reduced GST on medicines and insurance are going to benefit people and ease the financial burden.
 
This rationalisation in the healthcare sector marks a decisive step towards a healthier India. The decision to lower the cost of medical services has directly eased the financial burden on the people.