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Key Points

Telangana BJP President Ramchander Rao has expressed strong confidence in the new GST reforms. He emphasized that placing 99% of common items under a 5% tax slab will significantly help the poor and middle class. The reforms have already prompted major brands to reduce prices on essentials like milk and butter. Rao credited PM Modi's government for taking this bold step to strengthen the economy.

Key Points: Telangana BJP Chief Ramchander Rao Hails Modi GST Reforms Impact

  • New GST reforms shift 99% of daily use items to a lower 5% tax slab
  • The streamlined two-slab system aims to ease compliance and reduce consumer prices
  • Major brands like Amul and Mother Dairy have already announced price cuts on dairy products
  • Reforms are expected to boost manufacturing and support MSMEs amid global economic challenges
2 min read

Will have a wider positive impact on our Indian economy: Telangana BJP Chief Ramchander on GST reforms

Telangana BJP Chief Ramchander Rao says Modi's GST reforms placing 99% of daily items under 5% tax will benefit the poor and boost the economy.

"This is a significant reform in taxation that will benefit the poor, middle class, women, students, farmers, and everyone. - Ramchander Rao"

Hyderabad, September 22

Expressing confidence that the new GST reforms will help everyone, Telangana BJP President Ramchander Rao on Monday emphasised that the reforms will have a wider positive impact on the Indian economy.

Rao lauded the GST reforms, stating that 99 per cent of the daily use items have come under the 5 per cent GST, which will help the poor, middle class, women, students, farmers and other sections of the society.

"The next generation GST reforms, which were introduced by the Modi government, are going to help the middle-class families, the poor, small traders and the manufacturing field of MSME. Almost 99 per cent of the subjects are under the 5 per cent GST. This is a significant reform in taxation that will benefit the poor, middle class, women, students, farmers, and everyone. At this juncture, when there is an international financial crisis, recession is there, and wars are going on between countries, it is a bold step by PM Narendra Modi's government and will have a possibly wider impact on the Indian economy," Rao told ANI.

The reform in the Goods and Services Tax structure, which was approved during the 56th meeting of the GST Council earlier this month, is set to come into effect from today. The current four-rate system will be replaced with a streamlined two-slab regime of 5% and 18%. A separate 40 per cent slab has been retained for luxury and sin goods.

This new framework is expected to ease compliance, reduce consumer prices, boost manufacturing, and support a wide range of industries, from agriculture to automobiles and from FMCG to renewable energy. It is intended to lower the cost of living, strengthen MSMEs, widen the tax base, and drive inclusive growth.

In the fast-moving consumer goods (FMCG) and dairy sector, major brands like Amul and Mother Dairy have announced substantial price cuts, reflecting the full benefit of the GST reduction.

Items like milk, butter, ghee, paneer, cheese, ice cream, snacks, and frozen foods have been brought under the 5 per cent slab, due to which 100 g of Amul butter will now cost Rs 58 instead of Rs 62, and Ultra High Temperature milk (UHT) has dropped to Rs 75 per litre from Rs 77. Mother Dairy has also slashed prices on milkshakes, paneer, ghee, and frozen products.

- ANI

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Reader Comments

R
Rajesh Q
As a small business owner, I'm cautiously optimistic. The simplified two-slab system should reduce compliance burden. But I hope the government ensures proper implementation without creating confusion for small traders like us.
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Aditya G
Good move by the government! Streamlining GST will boost manufacturing and help MSMEs compete globally. The timing is perfect given the global economic challenges. This shows foresight in economic policymaking. 🇮🇳
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Sarah B
While the intention is good, I hope the benefits actually reach consumers. Sometimes companies don't pass on the full tax cuts. There should be proper monitoring mechanism to ensure price reductions are implemented properly.
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Karthik V
The reduction in dairy product prices is a welcome step. For a country where milk consumption is so high, this will positively impact nutrition standards, especially for children from economically weaker sections. 👏
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Michael C
Interesting reforms. The shift to two main slabs makes India's GST system more comparable with international standards. This should improve ease of doing business and attract more foreign investment in manufacturing.
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Neha E
Hope this brings real relief to common people. The price difference in Amul products is noticeable. If implemented properly across all sectors, this could indeed boost consumption and help economic recovery. Fingers crossed! 🤞

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