Uttarakhand Hails New GST Reforms as Catalyst for Economic Growth

Uttarakhand Chief Minister Pushkar Singh Dhami lauded the Indian government's fresh GST overhaul, describing the transition to two tax slabs of 5% and 18% as a 'historic decision' poised to benefit the entire nation. Scheduled to take effect from September 22, 2025, this reform aims to provide direct relief to the public while empowering small and medium enterprises.

The 56th GST Council Meeting resolved to consolidate the previous 12% and 28% rates into a leaner structure of 5% and 18%. The 5% bracket covers essential items such as food products and healthcare goods, as well as tools for agriculture and small industries. Conversely, the 18% bracket becomes the standard for most consumer and professional services, including electronic gadgets and automobiles. Luxury items remain taxed at a higher 40% rate.

Exemptions from GST continue for vital educational services and certain health insurances, a move expected to foster economic growth and generate more jobs, especially in tourism-reliant areas like Uttarakhand. Financial Minister Nirmala Sitharaman emphasized that these changes not only reduce the tax burden but also represent significant progress toward more equitable economic development.

(With inputs from agencies.)