Prime Minister Narendra Modi made a big announcement from the ramparts of the Red Fort on 15 August. On the occasion of Independence Day, he said that the prices of essential things are going to decrease. The government is going to reduce GST. He said that this time people are going to get double happiness on Diwali. He said that the second -phase reforms of the Goods and Services Tax (GST) will be implemented from Diwali this year.
Everyday things will be cheaper
Independence Day (Independence day) On the occasion of the Red Fort on the occasion, Prime Minister Modi (Prime Minister Narendra Modi) Said that GST rates (GST Rates) By rationalizing, the prices of things used daily will decrease. This will also benefit MSME. He said, “We have reduced the tax burden on the country in the last 8 years. We have made the tax system easier. This time the government is going to implement the GST reforms of the next phase on Diwali.”
GST rates decreased on GOM report
The GST Council formed a group of ministers (GOM) in September 2021 to review the GAC rates. This group was asked to give their opinion about changes in GST rates. Based on the report of this group, the government is going to change the GST rates. There has been a demand for changes in GST rates and reducing the number of slabs. It is believed that the number of slabs of GST can be reduced from 4 to 3.
GST system came into force on 1 July 2027
The GST system came into force on July 1, 2017. It has been 8 years since it was implemented. GST was considered the biggest reform in the tax system. In the last 8 years, there has been continuous efforts to improve the GST system. GST council takes big decisions related to GST. Its chief Finance Minister is Nirmala Sitharaman. It consists of Finance Minister of the states. The GST Council meets from time to time.
12 percent rate can be eliminated
It is said that the government is going to reduce GST on many things used daily. For this, the meeting of the group of ministers of the states is going to be held next week under the leadership of Bihar Deputy CM Samrat Chaudhary. Earlier in July, the plan for major changes in the GST system was approved by the Prime Minister’s Office. The government can eliminate the rate of 12 per cent. Currently, GST has 5 percent, 12 per cent, 18 per cent and 28 per cent.
Preparations to deal with the effect of American tariff
Experts say that American tariff may also be involved in the government’s decision to reduce GST. US President Donald Trump has announced a 50 percent tariff on India. However, India and America talks about tariffs continue. A delegation is going to come to India for talks at the end of this month. However, the government wants to be prepared in advance for the absence of a deal.
Domestic consumption will increase due to decrease in GST
Experts say that if 50 percent of the tariff of Trump is applied, it can have a half percent effect on India’s GDP. The government can prevent this deficiency in GDP by increasing domestic consumption. Reduce GST will increase domestic consumption.
Also read: Independence Day 2025: Private sector youth will get a profit of Rs 15,000 from developed India employment scheme, PM Modi announced from Red Fort
Weak economic class people benefit the most
Experts say that people of economically weaker sections will benefit the most from decrease in GST. This will reduce the price of other essential things including food. This will reduce the family’s monthly expenses. The government has already announced to tax-free income of up to 12 lakhs. This has brought a lot of relief to the middle class. There are more money saving for spending in their pockets.