NewKerala.com

Key Points

The new GST 2.0 reforms have officially taken effect, simplifying the tax structure. Over 200 commodities, especially daily-use items, are now cheaper due to lower tax rates. Major dairy brands like Amul have already reduced prices on products like butter and milk. The government expects these changes to boost manufacturing and provide relief to households.

Key Points: Ravi Shankar Prasad Says GST Reforms Make 200 Commodities Cheaper

  • GST Council replaces four tax slabs with two main rates of 5% and 18%
  • Essential items like dairy and snacks now taxed at the lowest 5% rate
  • Major brands Amul and Mother Dairy announce immediate price cuts on products
  • Reforms aim to ease compliance, boost manufacturing, and lower cost of living
2 min read

More than 200 commodities will get cheaper: Ravi Shankar Prasad

BJP MP Ravi Shankar Prasad announces GST 2.0 reforms, simplifying tax slabs to 5% and 18% to reduce prices on over 200 daily-use items.

"More than 200 commodities will get cheaper. I congratulate PM Modi. - Ravi Shankar Prasad"

Patna, September 22

Congratulating the Union Government over the GST reforms, BJP MP Ravi Shankar Prasad on Monday said that Prime Minister Narendra Modi believes in 'Sabka Saath, Sabka Vikas'.

The GST 2.0 reforms, which the Union Government approved on September 4, have been implemented from Monday.

Under the revised structure, the previous four-tier GST slabs have been consolidated into two main categories: 5 per cent and 18 per cent. Items that were earlier taxed at 12 per cent have been brought down to 5 per cent, while those in the 28 per cent category have been rationalised to 18 per cent. Essential commodities and daily-use items are now taxed at the lowest rate, making them more affordable for households.

"More than 200 commodities will get cheaper. I congratulate PM Modi. His government thinks about 'Sabka Saath, Sabka Vikas' and the Bihar government does the same," Prasad told reporters.

The reform in the Goods and Services Tax structure, which was approved during the 56th meeting of the GST Council earlier this month, is set to come into effect from today. The current four-rate system will be replaced with a streamlined two-slab regime of 5% and 18%. A separate 40 per cent slab has been retained for luxury and sin goods.

This new framework is expected to ease compliance, reduce consumer prices, boost manufacturing, and support a wide range of industries, from agriculture to automobiles and from FMCG to renewable energy. It is intended to lower the cost of living, strengthen MSMEs, widen the tax base, and drive inclusive growth.

In the fast-moving consumer goods (FMCG) and dairy sector, major brands like Amul and Mother Dairy have announced substantial price cuts, reflecting the full benefit of the GST reduction.

Items like milk, butter, ghee, paneer, cheese, ice cream, snacks, and frozen foods have been brought under the 5 per cent slab, due to which 100 g of Amul butter will now cost Rs 58 instead of Rs 62, and Ultra High Temperature milk (UHT) has dropped to Rs 75 per litre from Rs 77. Mother Dairy has also slashed prices on milkshakes, paneer, ghee, and frozen products.

- ANI

Share this article:

Reader Comments

R
Rohit P
Finally some good economic news! The two-slab system makes so much more sense than the complicated four-tier structure. Hope this boosts our manufacturing sector and creates more jobs. Kudos to the government for this reform.
A
Aditya G
While I appreciate the price reduction on daily essentials, I hope this doesn't affect state revenues. GST collection has been inconsistent, and we need to ensure this simplification doesn't create fiscal challenges down the line.
S
Sarah B
As someone who runs a small grocery store, the simplified GST will make billing and compliance much easier. The previous system was confusing for small businesses like mine. This is a welcome change! 👍
K
Karthik V
Good move, but implementation is key. Hope the price cuts actually reach consumers and aren't absorbed by retailers. The government should monitor this closely to ensure benefits are passed on properly.
M
Michael C
The dairy sector price cuts are significant. With inflation affecting household budgets, even small reductions in daily essentials make a difference. Hope more sectors follow suit with transparent pricing.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50