GST Reform Brings Major Tax Relief As Sitharaman Unveils New Plan With Reduced Slabs

Business News: Finance Minister Nirmala Sitharaman said on Saturday that the comprehensive change in GST is a reform for the people and this step will have a positive impact on the country's 140 crore population. Sitharaman said that we are talking to the industries to give the benefit of rate cut to the common people and from 22 September (the date of implementation of GST rate cut) our full focus will be on ensuring that people get its benefit. The GST Council, which comprises the finance ministers of the Center and the states, on Wednesday decided to reduce the GST slabs from four to two.

Now the tax rates will be 5 and 18 percent while a special rate of 40 percent will be applicable on luxury items and harmful goods like cigarettes. The new tax rates will be effective from September 22, except for cigarettes, tobacco and other related goods. As part of rationalization of rates, rates have been reduced on consumer goods like television and air conditioners as well as food and many everyday items.

140 crores will benefit

Sitharaman said that the comprehensive change in GST is a reform for the people and this step will have a positive impact on 140 crore people of the country. It will have some positive impact on the poorest of the poor. She also said that it is not just a matter of rate reduction but things will also become easier for companies. Whether it is a matter of refund or compliance or registration, things will become easier for them.

Sitharaman said that once this process is completed, 90 per cent of the refunds will be automatically cleared within a stipulated time. Also, within three days, companies will be able to successfully register themselves. She said that therefore, it will have an all-round positive impact on people and companies, especially small enterprises, farmers. Because the equipment they will buy, the pesticides they will buy, all of them are going to be cheaper.

Everybody was in agreement

She said that there was a consensus in the GST Council that people should get the benefit…. Although some states were definitely worried about the revenue. But there was a consensus that everyone should benefit from the reduction in rates. Sitharaman said that the reduction in GST rates will reduce the prices of goods and increase consumption and this will benefit the overall economy along with increasing revenue. She said that we are talking to the industries to give the benefit of reduction in rates to the common people. Many companies have also announced a reduction in prices. Sitharaman said that from September 22, my full focus will be on ensuring that people get the benefit of this.