On this Independence Day at the ramparts of Red Fort, Prime Minister Narendra Modi announced the Next Generation of GST reforms by Diwali. The Prime Minister’s vision of creating a more efficient and citizen-friendly economy was realised as the GST Council on 3rd September approved rates rationalisation with a focus on the common man.
The Council has simplified the indirect tax system into a two-tier structure of 5 per cent and 18 per cent from a four-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent. These reforms have reduced tax rates in many sectors, easing the life of citizens. Today, we look at the reforms undertaken for the daily essentials sector.
AIR correspondent reports that the GST reforms have been carried out with a focus on the common man and will come into effect fromthe 22nd of this month.
The GST Reforms will bring direct savings to households by reducing taxes on everyday essentials and packaged foods. GST on hygiene products like hair oil, soap, shampoo, toothpaste, tooth brush and shaving cream have been reduced from 18 percent to just five percent.
Items like Ultra-high temperature milk, paneer, chena, and all varieties of Indian breads, including roti and parantha, will be exempted from GST. Popular food items such as namkeen, bhujia, sauces, pasta, noodles, chocolates, coffee, cornflakes, butter, and ghee have also been brought down to the 5 percent category. Other household essentials such as bicycles, kitchenware, diapers and sewing machines will now attract only 5 percent GST.
Union Minister of Consumer Affairs, Food and Public Distribution, Pralhad Joshi said that a big relief has been provided for the poor and middle class by simplifying GST. He added that food items being reduced to nil or 5 percent has been one of the key highlights of the reforms.
Consumers from different walks of life have also welcomed the reforms, and told Akashvani News that they are eagerly anticipating its implementation.
This decision by the GST council will directly ease the financial burden on households and strengthen consumers by increasing their purchasing power.
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