GST 2.0 Reforms: A Historic Relief for India's Middle Class
The GST 2.0 reforms initiated by Prime Minister Narendra Modi are being hailed as a historic decision aimed at significantly aiding India's middle class and MSMEs. With a streamlined tax regime, these reforms are expected to boost indigenous industries and drive inclusive economic growth.
- Country:
- India
In a move hailed as "historic," Prime Minister Narendra Modi's government has enacted significant reforms to the Goods and Services Tax (GST), which Bharatiya Janata Party leader Tarun Chugh affirmed would provide substantial relief to the middle class and bolster micro, small, and medium enterprises (MSMEs). Highlighting a reduction of almost 2.5 lakh crore rupees in GST, Chugh emphasized that this adjustment will empower MSMEs and encourage the promotion of indigenous products across the nation.
Union Minister Gajendra Singh Shekhawat criticized the opposition for their persistent criticism of the GST reforms. Shekhawat asserted that the opposition has historically dismissed GST as the "Gabbar Singh Tax" and has promised its abolition. However, Shekhawat pointed out that the reform is anticipated to leave over 2 lakh crore rupees annually with general consumers, benefiting the 140 crore people of India.
The reform, approved at the GST Council's recent 56th meeting, introduces a streamlined two-tier GST system with rates of 5% and 18%, while maintaining a 40% slab for luxury and sin goods. This new framework is projected to simplify compliance, lower consumer prices, and support industries across various sectors, contributing to a more inclusive economic trajectory for the nation.
(With inputs from agencies.)
Google News