New Delhi: Prime Minister Narendra Modi has welcomed the introduction of the new two-tier Goods and Services Tax (GST) structure, effective from September 22. PM Modi described the move as one that would benefit farmers, MSMEs, the middle class, women, and youth. In a post on social media platform X, he called it a step towards next-generation GST reforms.
“During my Independence Day Speech, I had spoken about our intention to bring the Next-Generation reforms in GST. The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy,” PM Modi said in a post on X.
PM Modi said the GST Council, which includes both the Union and State governments, had collectively agreed to the proposals submitted by the Centre. He added that the wide-ranging reforms “will benefit the common man, farmers, MSMEs, middle-class, women, and youth.”
The comments came after Finance Minister Nirmala Sitharaman announced a major restructuring of the GST system, merging the existing 12% and 18% tax slabs into a simplified two-rate structure of 5% and 18%. Nearly all 12% and 28% slab items shifted to lower rates.
GST rejig has nothing to do with US tariffs: SitharamanThe two-tier Goods and Services Tax (GST) structure announced on September 3 has not been influenced by the tariffs imposed by the US on India, Finance Minister Nirmala Sitharaman has said. She said the Centre had been working on these for one-and-a-half years. The US has imposed 50 per cent tariffs on India, including 25 per cent additional duties “for purchase of Russian oil” as per US President Donald Trump. |
