Daijiworld Media Network - New Delhi

New Delhi, Sep 18: Union Electronics and IT minister Ashwini Vaishnaw on Monday hailed the recent Goods and Services Tax (GST) reforms, stating that the simplification of the tax structure will ease business operations across India and contribute nearly Rs 20 lac crore to the nation’s GDP.

Vaishnaw highlighted that the nationwide reform is welcomed as it allows consumers to save more of their income by making essential goods more affordable. He contrasted the current government’s actions with the previous UPA regime, claiming that while the latter focused on “talk without action,” the NDA administration has delivered real tax relief.

Several items have seen significant tax cuts under the new GST rates: cement’s tax rate has dropped from 30% to 18%; sanitary pads have been fully exempted from GST; footwear now attracts just 5% tax compared to the earlier 18%; refrigerators are taxed at 18%; and detergents are now GST-free.

Overall, around 370 items, including essential commodities and lifesaving medicines, have had their tax rates slashed, with many moving from the previous 5%, 12%, or 18% slabs to zero tax.

Finance Minister Nirmala Sitharaman has projected that this reform will boost the economy by injecting an additional Rs 2 lakh crore through increased consumer spending power.

The revamped GST structure now features only two main slabs — 5% and 18% — down from four, with a special 40% rate reserved for luxury and sin goods.

Union Minister Ramdas Athawale praised the move, saying it will elevate India’s economy to new heights. Speaking, Athawale remarked, “Prime Minister Narendra Modi has made many commendable decisions over his 11 years, and this GST reduction will greatly benefit the common man.” He also emphasized the Prime Minister’s call to support local businesses.