New Delhi: Prime Minister Shri Narendra Modi has welcomed the GST Council’s unanimous endorsement of the Union Government’s proposals for sweeping GST rate cuts and reforms, celebrating them as a historic Diwali gift to the nation. These next-generation GST measures promise tangible improvements for the common man, farmers, MSMEs, women, youth, and the middle class, making daily life easier and enhancing the ease of doing business across India.
Broad-Based Rate Reductions to Empower Citizens
The reforms provide substantial GST rate cuts on essentials, health care, agriculture, education, automobiles, and electronics:
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Daily essentials like hair oil, toothpaste, soaps, sanitary napkins, and baby products see GST rates slashed from 12% to 5%.
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Healthcare relief features insurance, medical devices, and spectacles with rates down to 5–12%.
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Agriculture support includes lower GST on tractor tyres, fertilizers, and forestry equipment, dropping rates to 5–12%.
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Automobile affordability is addressed by cutting taxes on key vehicles and parts from 18–28% to 5–12%.
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Education boost improves accessibility with reduced rates on maps, charts, and school supplies from 12% to nil.
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Savings on electronics include lower GST rates on appliances like air conditioners and sewing machines, cut from 28% to 12%.
Enhanced Process Reforms for Efficiency
The overhaul features simplified registration, expedited refunds, and reduced documentary requirements:
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Automatic registration and real-time approval for applicants
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Sanction of provisional refunds before detailed scrutiny
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Rationalized registration processes for startups and MSMEs
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Simplified returns and duty structure
A Step Towards Aatmanirbhar Bharat
The Prime Minister emphasized that these reforms reflect the spirit of cooperative federalism and national progress. He noted, “The wide ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses.”
Conclusion of next-gen GST Reforms
The acceptance of the comprehensive GST reform package marks a pivotal step in making India’s tax policy fairer and simpler, reinforcing confidence in governance and national growth. The reforms are set to drive economic resilience, inclusion, and prosperity across all segments of society.
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Source: PIB
