New GST Reforms Poised to Transform Indian Economy

Telangana BJP President Ramchander Rao expressed confidence in the new Goods and Services Tax (GST) reforms, highlighting their potential to benefit the Indian economy at large. Speaking on Monday, Rao emphasized that 99 per cent of daily essentials have now been categorized under the 5 per cent GST slab, a move expected to aid a wide array of social groups, including the poor, middle classes, women, and farmers.

Rao lauded the Modi government's implementation of these next-generation GST reforms, noting their significance amid global financial challenges and geopolitical tensions. Approved at the recent 56th GST Council meeting, these reforms will transition the current four-rate system to a simplified two-slab structure of 5% and 18%, maintaining a separate 40 per cent rate for luxury goods.

The revamped GST framework is projected to simplify compliance, lower consumer costs, drive manufacturing, and boost sectors from agriculture to renewable energy. FMCG giants, including Amul and Mother Dairy, have responded by reducing prices, with Amul butter dropping from Rs 62 to Rs 58 for 100g, and UHT milk prices falling from Rs 77 to Rs 75 per litre.

(With inputs from agencies.)