Historic GST Reforms Promise Relief, People-Friendly Tax Structure
India's GST Council has revamped the tax system, introducing two-rate slabs of 5% and 18%. The reform, welcomed by Bharatiya Mazdoor Sangh and Laghu Udyog Bharati, aims to ease the tax burden on essentials and boost small industries, demonstrating a commitment to economic growth and consumer welfare.
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The Indian government has announced groundbreaking reforms to the Goods and Services Tax (GST), aiming to shift towards a more people-friendly tax structure. The changes have been praised by Bharatiya Mazdoor Sangh (BMS), which noted a move away from taxing citizens' daily needs towards a system that focuses on luxury goods consumed by wealthier individuals.
BMS, an affiliate of the Rashtriya Swayamsevak Sangh (RSS), has particularly welcomed reduced taxes on labour-intensive sectors, essential consumer goods, healthcare products, and other items essential to daily life. The organization's General Secretary, Ravindra Himte, urged insurance companies and others to relay these benefits to consumers by lowering product prices.
After extensive discussions, the GST Council approved significant tax rate reductions, labeling it as a 'Diwali gift' for the country. This restructuring will see daily essentials becoming more affordable, as the council merges existing tax rates into two primary slabs of 5% and 18%. Effective from September 2025, Laghu Udyog Bharati echoed enthusiasm for this transformational step, highlighting its potential benefits for Micro and Small Enterprises (MSEs).
(With inputs from agencies.)
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