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Key Points

Union Minister Sukanta Majumdar has hailed the recent GST reforms as a historic decision under PM Modi's leadership. The changes include eliminating the 18% tax slab and introducing zero tax on education-related items. The GST Council has rationalized rates into two main slabs of 5% for essentials and 18% for standard goods. These reforms are expected to significantly benefit middle-class and poor families across India.

Key Points: Sukanta Majumdar Welcomes Modi GST Reforms as Historic Decision

  • GST Council merges 12% and 28% rates into two main slabs of 5% and 18%
  • Zero tax applied to education-related items and essential services
  • New 5% slab covers food items, dairy products, and agricultural equipment
  • 18% standard rate applies to automobiles, electronics, and household goods
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Historic decision...: Union Minister Sukanta Majumdar welcomes GST Reforms

Union Minister Sukanta Majumdar praises GST reforms eliminating 18% slab and zero tax on education items, benefiting middle class and poor under PM Modi.

"GST has been reduced; this is a very historic decision because the 18% slab has been eliminated. - Sukanta Majumdar"

New Delhi, September 6

Union Minister Sukanta Majumdar welcomed the Goods and Services Tax (GST) reforms, calling it a "historic decision" taken under the leadership of Prime Minister Narendra Modi.

Speaking to ANI on Friday, the Union Minister said, "GST has been reduced; this is a very historic decision because the 18% slab has been eliminated. Tax has been made zero on things related to education. Tax has been made zero on many such things, which will benefit the middle class and poor people."

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.

The 5 per cent slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agriculture equipment; handicrafts and small industries; also medical equipment and diagnostic kits.

The 18 per cent slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.

Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance; also, certain services related to education and healthcare are GST-exempt.

- ANI

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Reader Comments

R
Rohit P
Good move but implementation is key. Hope the benefits actually reach common people and don't get lost in bureaucracy. The simplification to two main slabs makes sense.
A
Arjun K
As a small business owner, the simplified tax structure will reduce compliance burden. The 18% uniform rate for auto parts is particularly helpful for our workshop. 👍
S
Sarah B
Appreciate the 40% tax on sugary drinks and tobacco - these products should be discouraged for public health reasons. Smart move to use taxation for social good.
V
Vikram M
While the reforms are welcome, I hope the government ensures that businesses don't use this as an opportunity to increase prices. Need strict monitoring mechanisms.
K
Kavya N
GST exemption on health insurance is a big relief! Medical costs are already so high in India. This will encourage more people to get insured. 💪

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