Union Electronics and IT Minister Ashwini Vaishnaw on Monday stated that simplifying the Goods and Services Tax (GST) framework will make doing business in India easier, stimulate demand, and contribute nearly Rs 20 lakh crore to the nation’s GDP.
Speaking to the media, Vaishnaw noted that citizens across the country are widely welcoming the reforms because they help them save more of their income and make everyday necessities more affordable.
He emphasised that, unlike previous administrations, the NDA government has delivered tangible financial relief to households and businesses.
Significant Reductions in GST Rates
The government has revised GST rates on key items: it reduced the tax on cement from 30 per cent to 18 per cent, exempted sanitary pads from the 13 per cent tax, cut the rate on footwear from 18 per cent to 5 per cent, set GST on refrigerators at 18 per cent, and made detergents tax-free.
In total, taxes on nearly 370 items, including essential goods and life-saving medicines, have been reduced. Items that previously fell under 5, 12, or 18 per cent slabs are now either tax-free or subject to lower rates, while luxury and sin goods attract a special 40 per cent GST.
Union Finance Minister Nirmala Sitharaman also noted that the government expects the reform to inject an additional Rs 2 lakh crore into the economy by increasing consumers’ disposable income.
Union Minister Ramdas Athawale praised the reforms, saying they will elevate India’s economy and benefit the common citizen.
Speaking to the new agency, he remarked, “This decision to reduce GST will be very beneficial for the common man and will take the country’s economy to new heights.”
Athawale further emphasised Prime Minister Narendra Modi’s appeal to support local businesses, noting that the reforms align with broader initiatives to encourage domestic entrepreneurship and boost market activity across sectors.
Officials say the move is likely to strengthen consumption, enhance market liquidity, and improve business confidence, marking a significant milestone in India’s economic reforms under the current government.
Also Read: Hazaribagh Residents Celebrate GST Reforms; Thank PM Modi For Relief
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