Indore, Sep 4 (IANS) Madhya Pradesh Chief Minister Mohan Yadav on Thursday said the Centre’s new GST reforms would benefit a large section of people and give a boost to local and small-scale industries across the country.
Yadav made the statement in response to the Centre’s decision to simplify GST slabs as part of its ongoing ease of doing business reforms.
Union Finance Minister Nirmala Sitharaman announced the reduction of the GST slabs late on Wednesday night.
Calling it a “courageous” step by the Centre, Yadav said Prime Minister Narendra Modi provided a major relief to the people and businesses in the country at a time when uncertainty gripped the global economy.
“As Prime Minister Modi had hinted at a major relief during his address on August 15, this GST reform within a month is undoubtedly a courageous step, especially amid uncertainty in the global economy. It also reflects his vision for the country,” Yadav added.
The Chief Minister, who was in Indore to attend a series of events, told the media that the new GST reform would give fresh momentum to economic growth at both the state and national levels.
For instance, Yadav said that, as an agriculture-based state, Madhya Pradesh produces agricultural products and equipment on a large scale.
“Reducing the GST, or even bringing it down to zero on agricultural products and other sectors such as health and education, will undoubtedly benefit Madhya Pradesh greatly,” Yadav added.
The Chief Minister further claimed that the GST reforms also showed that Modi’s commitment to protecting the interests of India’s farmers.
He said that after the GST reforms, the poor and middle class will benefit the most.
“Tractor tyres and parts now fall under 5 per cent (down from 18 per cent), while tractors drop from 12 per cent to 5 per cent. This shows that PM Modi is concerned about protecting the interests of farmers. Health and life insurance premiums, earlier taxed at 18 per cent, are now exempt. This is a big gift for the common man,” Yadav added.
Notably, in a landmark move on Wednesday, the GST Council, chaired by Finance Minister Nirmala Sitharaman, rationalised the indirect tax structure by reducing the existing four slabs to two, scrapping the 12 per cent and 28 per cent rates while retaining the 5 per cent and 18 per cent slabs.
The revised GST rates on services will take effect from September 22. The GST Council has lowered the tax on personal care items such as hair oil, shampoo, toothpaste, and dental floss from 18 per cent to 5 per cent. At the same time, it has raised the tax on cigars, cheroots, cigarillos, cigarettes, and other tobacco products, including substitutes, from 28 per cent to 40 per cent.
Moreover, the GST Council has reduced the tax on popular items such as namkeens, bhujia, mixtures, chabena, and other ready-to-eat packaged snacks. Previously taxed at 12 per cent, these items will now come under the 5 per cent slab, making them more affordable for consumers.
–IANS
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