Key Points

Suresh Saini, the General Secretary of the Jaipur Business Federation and Textile Industry, claimed that earlier, fewer people visited the shops during the Navratri festivities, but with the new GST rates being implemented from today, he hopes that the new rates will give relief to customers.

"We are watching like Deepawali Savings Festival. The way Prime Minister Narendra Modi's vision is, the common man will definitely get relief. Earlier, there was a shortage of customers in the shops during Navratri, but the new GST rate will provide relief to both customers and the general public," Saini told ANI.

To support youth-led MSMEs and exports, the Indian government has reduced GST rates for the textile and handicraft sectors. The tax rate on man-made fibres has decreased from 18% to 5%, while the GST on man-made yarns has dropped from 12% to 5%. Additionally, handicraft items such as statues, paintings, and traditional toys have also been moved to the 5% tax bracket. Overall, the GST rates for leather, footwear, textiles, handicrafts, and toys are now set at 5%.

Besides the textile sector, individuals from the automobile industry have also shown optimism regarding the new GST rates announced by the Indian government. Saket Jain, the General Manager of KS Motors, stated that the new GST rates announced by the government will benefit both consumers and the overall market. He noted that the prices of vehicles have decreased by approximately 1 to 1.5 lakh rupees.

"The GST 2.0 implemented by Prime Minister Narendra Modi and his government will be a major relief for all. The common man will get a discount of up to 12-13 per cent on a car. This will also reduce the price of vehicles by about 1 to 1.5 lakh rupees. It will not only benefit the customers but also the markets."

Additionally, automobiles will also witness a transparent rationalisation of rates, as the new tax rates on small cars, two-wheelers up to 350cc, and auto parts have shifted from 28 per cent to 18 per cent. To enhance investment in new vehicles among people, GST on large cars has now been rationalised to 40% with no cess. Moreover, the GST on buses with a seating capacity of 10+ persons has reduced from 28% to 18%.

Meanwhile, BJP MP and Confederation of All India Traders (CAIT) Secretary General, Praveen Khandelwal, lauded the GST reforms, calling it a "gift for the common people".

Speaking to ANI, Khandelwal said, "The gift by slashing GST rates will definitely bring down the prices of goods by 15-20%. We are celebrating this across the country as 'Bachat Utsav'. The budget of the household of a common woman will be relaxed by 15-20%. Every section of society will benefit."

Earlier, the 56th GST council meeting had decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

Under the new structure, the 5 per cent slab includes essential goods and services such as food items like butter, ghee, cheese, dairy spreads, and pre-packaged snacks like namkeens, bhujia, and mixtures.

It also covers agricultural equipment, including drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tyres.

Handicrafts and small industries like sewing machines and their parts are part of this slab, as well as health and wellness products, such as medical equipment and diagnostic kits.

The 18 per cent slab serves as a standard rate for most goods and services. It includes automobiles like small cars and motorcycles (up to 350cc), consumer goods like electronics and household items, and various professional services. A uniform 18 per cent rate applies to all auto parts as well.

Additionally, there is a separate 40 per cent slab for luxury and sin goods. This includes items such as tobacco, pan masala, cigarettes, bidis, aerated sugary beverages, luxury vehicles, high-end motorcycles (over 350cc), yachts, and helicopters.

Moreover, essential services and educational items are fully exempted from GST. This exemption includes individual health, family floater, and life insurance premiums, as well as specific education and healthcare services.

- ANI