GST Reforms: A Historic Shift Under PM Modi's Leadership

In a significant move lauded by Bharatiya Janata Party MP Tejashwi Surya, Prime Minister Narendra Modi's government has introduced historic reforms to the Goods and Services Tax (GST) system. Surya noted how these initiatives have brought a new dimension to the economy by rationalizing tax evasion.

The recent 56th GST Council meeting focused on simplifying tax rates, consolidating them into two primary slabs of 5 percent and 18 percent, while eliminating the earlier 12 percent and 28 percent categories. The 5 percent slab will cover essential items like food, agricultural equipment, and handicrafts, whereas the 18 percent slab applies to standard goods and services.

The reforms also highlight exemptions, especially in critical sectors, with 0 percent GST on education, cancer medications, and life-saving medicines, placing India among the few nations offering 0 percent GST on health insurance. Certain essential services, such as health and life insurance, along with some educational services, remain GST-exempt.

(With inputs from agencies.)