Key Points

Speaking in the press conference on Wednesday, Nirmala Sitharaman said, "Is the Congress Party demanding five per cent tax on tobacco and gutkha? Congress Party wants us to give it at 5%. Congress Party considered impossible to implement GST during their time. We have implemented and are also doing second-generation reforms under the leadership of Modi ji so that people get relief on their day-to-day items."

Sitharaman said that GST reforms are helping MSMEs and labour-intensive industries by making compliance easier, and urged the Congress to clarify whether it supports or opposes measures that benefit the people.

"MSMEs and labour-intensive units also get relief, due to which there will be easy compliance. Congress should decide whether it wants to oppose or support on the issues that are in the interest of the people. People will expose you," she added.

Finance Minister Nirmala Sitharaman announced a sweeping reduction in GST rates on a wide range of essential items, automobiles, agriculture inputs, and electronic appliances.

The 56th GST council meeting 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.

On the essential items front, items of daily household use will now cost less. Products such as hair oil, shampoo, toothpaste, toilet soap bars, toothbrushes, and shaving cream, which earlier attracted 18 per cent GST, will now fall under the 5 per cent bracket.

Sitharaman announced a complete removal of GST on individual health and life insurance.

Farmers and the agriculture sector stand to gain significantly from these reforms as tractor tyres and parts, earlier under 18 per cent GST, will now be taxed at just 5 per cent, while tractors themselves will also see their rate reduced from 12 per cent to 5 per cent.

- ANI