Gurugram: Union Minister Ashwini Vaishnaw on Thursday lauded the recent Goods and Services Tax (GST) reforms, calling them a landmark move that will benefit every family in India, particularly the middle class.
Speaking to the media, Vaishnaw noted that the revised GST slabs—set to take effect from the first day of Navaratri—reduce rates on a wide range of essential goods commonly used in middle-class households.
“From the ramparts of the Red Fort, the Prime Minister had promised a major Diwali gift for the middle class. Yesterday, that promise was fulfilled. The new GST reforms will help each and every family by lowering the tax burden on everyday items,” said Vaishnaw.
The GST Council, during its 56th meeting, approved a major overhaul of the tax structure by consolidating the previous four-rate system into two primary slabs—5% and 18%. The 12% and 28% rates have been merged into these revised brackets.
Revised GST Structure Highlights:
5% Slab:
Essentials: Butter, ghee, cheese, dairy spreads, packaged snacks like namkeens and bhujia, kitchen utensils
Agriculture: Drip irrigation systems, sprinklers, bio-pesticides, soil preparation and harvesting machinery, tractors and tires
Cottage Industries: Sewing machines and parts
Healthcare: Medical devices and diagnostic kits
18% Slab:
Automobiles: Small cars, motorcycles up to 350cc, all auto parts
Consumer Goods: Electronics, household items
Professional Services: Standard rate for most services
40% Slab: Reserved for luxury and sin goods, including tobacco, pan masala, sugary beverages, luxury vehicles, high-end motorcycles (above 350cc), yachts, and helicopters
GST-Exempt:
Insurance: Health, life, and family floater premiums
Public Services: Select healthcare and educational services
The industry has welcomed the reforms. Jayen Mehta, Managing Director of Amul India, praised the reduction in GST on dairy and food products, saying it would boost consumption and support millions of dairy farmers.
“This decision will positively impact more than 10 crore families associated with the dairy sector,” Mehta said. “Over 30 dairy product categories have seen tax cuts, which will lead to income growth for milk producers and enhance affordability for consumers.”
The reforms are aimed at simplifying the tax system, reducing the burden on the common citizen, and spurring consumption and economic activity ahead of the festive season.
