Key Points

Speaking to IANS, she said: “Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman are receiving nationwide praise because the GST, which previously had four slabs, has now been reduced to two."

Kulkarni also said that while a third slab of 40 per cent still exists for ultra-luxury items, the practical structure now revolves around two primary slabs -- 5 per cent and 18 per cent.

She emphasised that essential and daily household items such as ghee have been exempted from GST entirely, making them more affordable for the common citizen.

Agricultural goods, previously taxed at 12 per cent, have seen a reduction to 5 per cent, and even medical-related products and insurance policies have benefited from lowered GST rates.

“This is a Diwali gift for the people,” Kulkarni remarked, noting that the reforms align with the Prime Minister’s Independence Day promise to make GST more citizen-friendly.

She further stated that the GST Council’s decision reflects a commitment to easing the financial burden on ordinary families, especially during festive seasons like Ganesh Utsav, which is currently being celebrated across Maharashtra.

“Ganpati Bappa’s blessings are with us,” she added, attributing the reforms to divine grace and good governance.

The revised GST structure is expected to simplify compliance and reduce costs for consumers, while maintaining higher rates only for luxury vehicles and premium goods -- segments that, Kulkarni noted, do not impact the average Indian household.

Earlier on Thursday, PM Modi said that the next-generation GST reforms are a step towards building a healthier and stronger India.

Interacting with social media users on X and responding to posts by economists, corporate employees and middle-class people on GST 2.0 reforms, PM Modi said the measures reflect the vision of ‘Swasth Bharat’ by making essential food items, cooking essentials and protein-rich products more affordable for families across the country.

“The #NextGenGST measures reflect the vision of 'Swasth Bharat' by making essential food items, cooking essentials and protein-rich products more affordable for families across India,” PM Modi said.

“Together, with initiatives like Ayushman Bharat and POSHAN Abhiyaan, these reforms strengthen our commitment to better health, balanced nutrition and improved quality of life for every citizen,” the Prime Minister stated.

Highlighting the larger journey of reforms, the Prime Minister noted that the past decade has been about bold decisions shaping India’s economic landscape.

PM Modi recalled corporate tax cuts that encouraged investments, the rollout of GST that created a unified market, and personal income tax changes that enhanced ease of living.

According to the Prime Minister, the new GST reforms continue this journey by making the system simpler, fairer and more growth-oriented.

Prime Minister Modi added that India’s fiscal discipline has boosted global confidence and improved the country’s credit ratings, laying a strong foundation for a Viksit Bharat.

The Prime Minister also linked the reforms to the rural economy, particularly the dairy sector.

PM Modi said that the contribution of India’s Annadatas has been crucial for ensuring nutritional security and strengthening the rural economy.

“Through initiatives like the Rashtriya Gokul Mission, support for cooperatives and continuous reforms, our Government remains committed to transforming India’s dairy sector. The #NextGenGST reforms are another step towards empowering lakhs of dairy farmers, boosting value addition and making dairy products more affordable for every household,” PM Modi added.

- IANS