New Delhi, Sep 4: Lauding Prime Minister Narendra Modi's visionary leadership for delivering on his promises to the people of the country, Union Home Minister Amit Shah termed the GST tax rate cuts and reforms as a "truly transformative decision" and added that these reforms will not only "ensure ease of living but also give a big boost to ease of doing business, especially for small traders and entrepreneurs".

Taking to his official X account, Union Home Minister Shah said: "PM @narendramodi Ji stands for what he commits. This historic decision of GST rate cuts and process reforms will bring huge relief to the poor and middle class, while also supporting farmers, MSMEs, women and youth. By simplifying the system and reducing the burden on common citizens, these reforms will not only ensure ease of living but also give a big boost to ease of doing business, especially for small traders and entrepreneurs. A truly transformative decision for Bharat!#NextGenGST."

Calling it a "bold decision", Union Defence Minister Rajnath Singh also thanked PM Modi and Union Finance Minister Nirmala Sitharaman for announcing the GST reforms on Wednesday.

Taking to X, Union Defence Minister Rajnath Singh said: "The Government of India under the leadership of PM @narendramodi has announced the Next-Gen GST reforms to bring relief across sectors. With tax rates reduced on many important items, this reform will bring ease of living, further strengthen ease of doing business, empower small businesses, and boost India's self-reliance under Aatmanirbhar Bharat. I thank PM Modi and the FM Nirmala Sitharaman for taking this bold decision."

After the Union government announced sweeping next-generation GST reforms to bring relief across sectors, from daily essentials and healthcare to farming, education, automobiles, and appliances, External Affairs Minister (EAM) S. Jaishankar lauded the rollout and said that this will have a significant impact on the Centre's efforts to improve ease of living and doing business in the country.

Taking to social media platform X early Thursday morning, EAM Jaishankar said: "Delivering on PM@narendramodi's Independence Day announcement, the @GST_Council decision to adopt the #NextGenGST today will have huge impact on the transformation story underway in India and the Government's effort to improve ease of living & doing business. Congratulate PM and FM@nsitharaman on this historic achievement."

BJP President J.P. Nadda in a post on X said: "Under the visionary leadership of PM @narendramodi ji, the Union Government has announced the Next-Gen GST reforms to support ongoing growth and development. Reduced tax rates on several essential products will enhance ease of living, help families manage costs, and bring relief to different sectors. At the same time, this reform will strengthen the ease of doing business and empower small businesses across the country. My heartfelt gratitude to PM Narendra Modi ji and Finance Minister @nsitharaman ji for this forward-looking decision that will benefit our citizens, especially middle-class families.#NextGenGST."

Union Commerce and Industry Minister Piyush Goyal in a post on X said: "PM @NarendraModiji's historic Diwali gift for all! Heartiest congratulations to PM Modi ji and FM @NSitharamanji on the introduction of the #NextGenGST reforms, duly supported by the @GST_Council in line with the Union Government's proposals on GST rate cuts and reforms. These broad-based GST rate rationalisation and process reforms are aimed at enhancing ease of living for citizens, supporting farmers, MSMEs, the middle-class, women, and youth, while fostering growth across key sectors of the economy. The GST reforms will benefit consumers, strengthen ease of doing business, and create new opportunities for small traders, enterprises, and industry, reinforcing the vision of #ViksitBharat and advancing India’s journey towards sustainable and inclusive growth."

Union Agriculture and Farmers Welfare Minister Shivraj Singh Chouhan wrote in a post on X: "#Rise of New India with NextGenGST! The resolve taken by the Prime Minister @narendramodiji from the ramparts of the Red Fort regarding Next-Generation GST Reforms has been realised today. This historic decision, passed unanimously by the @GST_Council, is a commitment to making the lives of 1.44 billion Indians simpler, smoother, and more empowered. Before Diwali, the Prime Minister ji has given such a gift to the countrymen, which will bring prosperity to every home. This decision will bring unprecedented ease to the lives of the common man, farmers, youth, and small traders, and will give new momentum to the construction of 'Developed India'. I heartily congratulate the illustrious Prime Minister ji for this decision in the public interest."

Uttar Pradesh Chief Minister Yogi Adityanath in a post on X said: "Under the leadership of PM@narendramodi ji and FM@nsitharaman ji, the #NextGenGST reforms approved by the GST Council are truly commendable. These transformative measures will simplify the lives of citizens, make business easier, and accelerate local manufacturing and entrepreneurship. Heartfelt gratitude to the Hon’ble PM and thanks to the Hon'ble FM for these welfare-oriented decisions that will make India’s economy stronger and more inclusive."

Uttarakhand Chief Minister Pushkar Singh Dhami in an X post said: "From farmers to enterprises, from households to businesses, this new generation GST will bring happiness to everyone. Under the able leadership of the Prime Minister @narendramodiji, the Central Government's commitment is implementing a new system of GST reforms in the country. Simplifying the GST structure further, now only two slabs of 5% and 18% will apply. This historic decision will not only provide direct relief to common citizens but also empower medium and small industries and small traders with new strength. This decision will provide relief to sectors including agriculture, health, education, automobiles, electronics, and others. In a tourism-dependent state like Uttarakhand, this reform will prove particularly beneficial, as reduced tax burden will boost investment, and new employment opportunities will open up for the youth. On behalf of all the residents of the state, heartfelt thanks to the Prime Minister and the Union Finance Minister @nsitharamanji for this historic decision!"

Assam Chief Minister Himanta Biswa Sarma took to his official X account and said: "Assam extends heartfelt gratitude to Prime Minister @narendramodiJi for ushering in one of the most consequential reforms in India's GST structure, and to the GST Council for ensuring these changes see the light of day. The new regime agreed upon today will serve as a super booster for the Indian economy, bringing agility to small & medium businesses, spurring job creation, driving consumption, and most importantly, leaving more money in the hands of our people. Having closely followed the evolution of GST over the last 8 years, particularly during my tenure as Assam's Finance Minister, I see this as a defining moment. India's ability to successfully implement GST and also to adapt and reform- when required -- is a shining testament to the Modi Government's firm yet flexible approach to governance."

In a historic step toward overhauling India's indirect tax system, the GST Council, chaired by Union Finance Minister Sitharaman, on Wednesday approved sweeping rate rationalisation reforms, cutting down the existing four-rate GST structure to just two slabs -- 5 per cent and 18 per cent.

The Council scrapped the 12 per cent and 28 per cent tax slabs, implementing a simplified two-rate system aimed at reducing the burden on consumers and boosting economic activity. The reforms will come into effect from September 22, starting with revised tax rates on key goods and services.

Soon after the announcement, Prime Minister Narendra Modi took to the social media platform X to applaud the move, stating: “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. Glad to state that @GST_Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts & reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth. The wide-ranging reforms will improve the lives of our citizens and ensure ease of doing business for all, especially small traders and businesses.”

GST reforms are not just for rationalising rates but structural too, Finance Minister Nirmala Sitharaman said on Wednesday, adding that the decision of the GST Council has been taken with full consensus and all ministers supported rate rationalisation.

In most cases, GST rates have come down drastically, and rates have been cut for farmers and agriculture and health-related products, she said during a press briefing, after the 56th Meeting of the GST Council ended here.

"PM (Narendra) Modi desired to give the benefit of GST cuts to people at the earliest. These reforms are not only on rationalising rates, but they are structural too. We have corrected the inverted duty structure," FM Sitharaman said.

With tax rates slashed on dozens of items, the reform promises to make living more affordable, empower small businesses, and boost India’s self-reliance under Aatmanirbhar Bharat, the Finance Minister said.

Also read: GST 2.0: What Gets Cheaper And Costlier From Sep 22

FM Sitharaman said that "in common man and middle class items, there is a complete reduction".

It has been decided that the GST will be levied on retail sale price (RSP) instead of transaction value on pan masala, gutkha, cigarettes, unmanufactured tobacco, and chewing tobacco, like Zarda.

The changes in GST rates of all goods except pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi, will be implemented with effect from September 22.

The GST Council has taken various decisions and recommended various measures to facilitate trade.

The GST overhaul, described by experts as a "next-generation" reform, focuses on three key pillars as highlighted by PM Modi.

(IANS)

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