GST Simplified to Two Slabs, Tax Burden Eased: FM Sitharaman
Finance Minister says reforms with 5% and 18% GST slabs will benefit 1.4 billion Indians
- Two-Slab Structure: GST reduced from four tiers to 5% and 18%.
- Lower Tax for Essentials: Many goods shifted from 12%/18% to 5%, essentials at 0%.
- Nationwide Benefit: Reform to ease tax burden for 1.4 billion citizens.
- Trade-Friendly: Move expected to simplify compliance and boost industry confidence.
GG News Bureau
Chennai, 14th Sept: Union Finance Minister Nirmala Sitharaman on Sunday announced that the Goods and Services Tax (GST) regime has been simplified, cutting the tax burden on citizens and industries alike.
Speaking at the Joint Conclave of Trade and Industries Association – ‘Tax Reforms for Rising Bharat’ in Chennai, the Finance Minister said the earlier four-tier GST system has been streamlined into just two slabs.
“Earlier, GST had four categories. Now, we have simplified it into two slabs—5 per cent and 18 per cent,” Sitharaman stated. “Items that were taxed at 12 per cent and 18 per cent have largely been moved to the lower 5 per cent bracket. For certain essentials, tax has been reduced to zero. This reform will significantly benefit all 1.4 billion Indians.”
The Minister highlighted that this restructuring not only simplifies compliance for businesses but also makes essential goods more affordable, strengthening consumer purchasing power and supporting economic growth.
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