GST Overhaul: Modi Government's Second-Phase Reforms Aim for Economic Relief

Union Finance Minister Nirmala Sitharaman has criticized the Congress for previously deeming the Goods and Services Tax (GST) as an unachievable feat, proudly noting that the Modi administration has not only implemented the tax policy but is advancing it through further reforms. In a notable move, the current government is now easing the financial burden on citizens with second-phase GST reforms.

Finance Minister Sitharaman, during a press discussion on Wednesday, voiced her disdain for the Congress Party's previous opposition to GST. She expressed concerns over the opposition's suggestion for a five per cent tax rate on tobacco and gutkha while highlighting that her government is performing second-generation reforms that are designed to offer people economic relief on everyday goods.

Sitharaman detailed the advantageous impacts of GST reforms on MSMEs and labor-intensive sectors, which are said to experience simplified compliance. Congress, according to her, needs to clarify its stance on these pro-people measures. The reforms, which include a sweeping reduction in tax rates on essentials, have been decided in the 56th GST council meeting. Items of daily use and agricultural tools like tractor parts will now see a tax reduction, potentially easing expenses significantly for sectors reliant on these goods.

(With inputs from agencies.)