MSME's Role in India's Economy Highlighted Amid GST Overhaul
Union Minister Jitan Ram Manjhi emphasized the pivotal role of MSMEs in driving India's GDP, contributing 31%. The 56th GST council meeting decided on a new tax structure with two main slabs—5% and 18%. Essential goods and luxury items are taxed differently, while some services remain GST-exempt.
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Union Minister Jitan Ram Manjhi underscored the crucial role played by Micro, Small, and Medium Enterprises (MSMEs) in India's economy, noting their 31% contribution to the nation's Gross Domestic Product (GDP). The recent 56th GST council meeting resolved to streamline tax slabs, merging the 12% and 28% rates into two primary categories: 5% and 18%.
Manjhi emphasized MSMEs' significant impact, highlighting their 35% contribution to manufacturing and 46% to exports, positioning them as the backbone of the economy next to agriculture. 'The Finance Minister aims to bolster small industries,' he conveyed, reflecting on the Prime Minister's implementation of the Pradhan Mantri Vishwakarma scheme.
The new GST structure categorizes essential goods and services, like food items and agricultural equipment, at a 5% slab, whereas a standard 18% rate covers most consumer goods and services. Luxury items face a 40% tax, and certain services, particularly in health and education, are exempt from GST altogether. (ANI)
(With inputs from agencies.)
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