Historic GST Reforms: A Boon for the Middle Class
The Indian government has unveiled major GST reforms, eliminating the 18% slab under Prime Minister Narendra Modi's leadership. Essential services and educational items are now GST-free, benefiting the middle and lower-income groups. A new GST structure features two slabs: 5% and 18%, encompassing most goods and services.
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In a move hailed as historic, Union Minister Sukanta Majumdar has welcomed the recent GST reforms announced by the Indian government, led by Prime Minister Narendra Modi. The revised Goods and Services Tax framework eliminates the 18% slab, marking a significant shift aimed at alleviating tax burdens on the middle class.
According to Majumdar, essential items linked to education are now entirely exempt, alongside many other goods and services previously taxed at 18%. This restructured tax regime now comprises two main slabs: 5% for essential goods and services, including food and kitchen items, agriculture tools, handicrafts, and medical equipment, while the 18% slab covers a wider range of consumer goods and services, including small automobiles and electronic items.
Meanwhile, luxury items and what are termed as 'sin goods', like tobacco products and high-end vehicles, are subjected to an increased 40% tax rate. Exemptions extend to critical services like healthcare, education, and certain insurance products, providing a comprehensive relief package for everyday citizens.
(With inputs from agencies.)
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