NewKerala.com

Key Points

Maharashtra Chief Minister Devendra Fadnavis has strongly welcomed the recent GST reforms as second-generation changes that will significantly benefit the economy. He emphasized that these reforms will reduce the tax burden on consumers while boosting trade, demand, production and employment across the country. The GST Council has rationalized rates into two main slabs of 5% for essentials and 18% for standard goods, eliminating the 12% and 28% brackets. These changes are expected to provide substantial relief to households, farmers, businesses and the healthcare sector while stimulating economic growth.

Key Points: Fadnavis Praises Modi GST Reforms as Major Economic Boost

  • GST rationalized to two main slabs of 5% and 18% from previous four rates
  • Essential goods and agricultural equipment placed in 5% tax bracket
  • Luxury items and sin goods taxed at higher 40% rate
  • Health insurance premiums and educational services fully exempt from GST
2 min read

Huge boost to country's economy, Maharashtra CM Devendra Fadnavis lauds GST reforms

Maharashtra CM Devendra Fadnavis welcomes second-generation GST reforms, saying they will reduce tax burden and boost economy through increased trade and employment.

"This will reduce the burden of taxes on consumers and increase trade, demand, production and employment - Devendra Fadnavis"

Mumbai, September 4

Maharashtra Chief Minister Devendra Fadnavis on Thursday welcomed the GST reforms, calling them second-generation changes that will ease the tax burden on people and give a major boost to the country's economy.

Speaking to the reporters, Devendra Fadnavis said, "Second generation reforms were much needed and the Prime Minister has initiated second generation reforms. This will reduce the burden of taxes on consumers and increase trade, demand, production and employment. This will give a huge boost to the country's economy... The Maharashtra government supports these reforms..."

Gujarat Finance Minister Kanubhai Desai also praised the reforms saying that the common people would benefit from this.

"The Prime Minister had said that people would receive gifts on Diwali... There has been a significant reduction in GST. On cement, food items, insurance, and insurance premiums, reductions have been made in GST on all these. Common people have received many such benefits," he said.

A day earlier, Finance Minister Nirmala Sitharaman announced a sweeping reduction in GST, aimed at providing relief to households, farmers, businesses and the healthcare sector.

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.

5% 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; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.

While the 18% 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, no GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare are GST-exempt.

- ANI

Share this article:

Reader Comments

R
Rohit P
As a small business owner, I welcome these changes. The simplified tax structure will reduce compliance burden and help us focus more on growth. Good move!
A
Arjun K
While the reforms are positive, implementation has always been the challenge. Hope the government ensures smooth transition and proper awareness among traders and consumers.
S
Sarah B
The 40% slab on luxury goods and sin products makes perfect sense. Tax the wealthy and unhealthy products while making essentials affordable for all. Balanced approach!
V
Vikram M
Agricultural equipment under 5% GST is a game-changer for farmers. Combined with tractor tax reduction, this will boost rural economy significantly. 👏
M
Michael C
The healthcare exemptions are particularly welcome. No GST on insurance premiums and medical equipment will make healthcare more accessible to ordinary citizens.
K
Kavya N
Hope this actually translates to lower prices at the consumer level. Sometimes businesses don't pass on the benefits. Government should monitor this closely.

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

Leave a Comment

Minimum 50 characters 0/50