India's New Two-Tier GST: Boosting Atmanirbhar Bharat Vision
The Indian government's shift to a two-tier GST system represents significant progress in the nation's indirect tax regime, aligning with Prime Minister Narendra Modi's Atmanirbhar Bharat initiative. Key reforms include reduced tax for essential goods, offering economic relief to the public, and fortifying the economy against geopolitical fluctuations.
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In a bold restructuring of the tax landscape, the Indian government has unveiled a two-tier Goods and Services Tax (GST) system, which former FICCI President Subhrakant Panda lauded as a sign of maturity in the country's indirect tax regime. This reform aligns with Prime Minister Narendra Modi's vision for Atmanirbhar Bharat, or a self-reliant India.
Panda emphasized that the two-tier GST would notably boost demand by reducing costs on everyday and aspirational items. This alignment with Modi's initiative aims to bolster the economy against potential geopolitical challenges, capitalizing on India's young population and vast domestic market.
BJP Telangana state president N Ramchander Rao also commended the GST changes, noting the reduction in tax rates despite increasing global tariffs. The new slabs set essential goods at 5% and standard goods at 18%, with luxury items at 40%, promising economic relief for farmers, citizens, and the middle class.
(With inputs from agencies.)
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