Revamped GST Slabs: A Boon for Indian Economy
Prime Minister Modi's major GST reforms were lauded by industry leaders. The overhaul includes scrapping 12% and 28% slabs to retain only 5% and 18%. This rationalization is aimed at boosting consumer spending and supporting businesses, with expected positive economic impacts before the festive season.
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In a move that could transform India's tax landscape, Prime Minister Narendra Modi announced a significant reform of the Goods and Services Tax (GST) structure. In an address to the nation, Modi revealed plans to reassess GST provisions, winning widespread praise from industry leaders and business communities.
According to government sources, the reform involves scrapping the existing 12% and 28% GST slabs. Instead, the administration plans to consolidate the rates into just two brackets: 5% and 18%. As per the proposal, 99% of items currently in the 12% slab would shift to 5%, while 90% of items in the 28% slab would move to 18%.
Prominent voices from the industry welcomed the announcement. Pankaj Mohindroo of the India Cellular & Electronics Association hailed the move as essential for achieving 'Viksit Bharat @ 2047'. Economist Ved Jain noted that the decision is backed by GST's eight-year track record of improved collections. Meanwhile, Ranjeet Mehta, CEO of PHDCCI, emphasized its potential benefits for small traders and MSMEs, predicting a boost for the economy before the festive season.
(With inputs from agencies.)
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