Union Electronics and IT Minister Ashwini Vaishnaw on Monday said that the simplification of the Goods and Services Tax (GST) framework will significantly improve ease of doing business, boost demand, and add nearly ₹20 lakh crore to India’s GDP.
Speaking to the media, Vaishnaw said the reform is being welcomed across the country as it allows people to save a greater share of their income and makes most everyday essentials more affordable.
Targeting the opposition, the minister remarked that under the UPA administration, there was “only talk and no action,” whereas the NDA government has delivered “tangible relief” through GST reforms.
He cited several examples of lower GST rates: cement – reduced from 30% to 18%; sanitary pads – reduced from 13% to zero; footwear – reduced from 18% to 5%; refrigerators – now taxed at 18%; and detergents – now tax-free.
Overall, taxes on nearly 370 items, including daily necessities and life-saving medicines, have been reduced. Many items previously taxed at 5%, 12%, or 18% are now fully exempt.
Union Finance Minister Nirmala Sitharaman said the reform would inject an additional ₹2 lakh crore into the economy by increasing disposable income and spurring consumption.
Under the new structure, GST slabs have been simplified from four — 5%, 12%, 18% and 28% — to just two: 5% and 18%, with a special 40% rate reserved for luxury and sin goods.
Union Minister Ramdas Athawale also praised the decision, calling it one of the most impactful moves by Prime Minister Narendra Modi in his 11-year tenure. “This decision to reduce GST will be very beneficial for the common man and will take the country’s economy to new heights,” he said, urging citizens to support local businesses in line with the Prime Minister’s call for Vocal for Local.
(With inputs from IANS)