Kolkata: The Centre has announced sweeping changes to the Goods and Services Tax (GST) structure, a move that will benefit every citizen of the country, Union Finance Minister Nirmala Sitharaman said on Thursday.
Speaking at a talk show held at the National Library, the Finance Minister said, “From the moment people wake up in the morning until they go to bed at night, almost everything they use comes under GST. With the revised tax rates, prices of these items will come down, giving relief to common people.”
She further noted that nearly 1.4 billion people—across cities and villages, men and women alike—would benefit from the reform. With GST reduced on essential commodities, prices of many daily-use items will become more affordable, offering relief to the middle class during the festive season.
It may be recalled that Prime Minister Narendra Modi had hinted at GST reforms during his Independence Day address. Subsequently, in the first week of September, the GST Council approved the new structure.
Under the revised system, there will now be three slabs—5%, 18%, and 40%. A 40% GST has been fixed for luxury goods, while tax rates on many essential commodities have either been reduced or removed entirely.
The new GST rates will come into effect from September 22. Explaining the gap before implementation, Sitharaman said the additional time was given to allow businesses to adjust their accounts and to help markets transition smoothly.