New Delhi , September 5 : Union Finance Minister Nirmala Sitharaman on Friday announced that the foremost priority of the government is to ensure that the benefits of the GST tax reforms reach all the common people of the country.
In an interview with India Today TV and Aaj Tak, the minister mentioned that the government has a lot of work after September 22 and expressed confidence that the benefits of the GST reforms will reach the common people.
“Our main focus will be on ensuring that rate cuts are passed on to the janta. We have a lot of work post-22nd September. It is a big vigilance exercise and we are confident the benefits will reach the common man,” Nirmala Sitharaman said.
Sitharaman emphasised that the new GST reforms are designed to keep the basic necessities and aspirations of the middle class and the common man of the country. She stressed that 90 per cent of the items fall under the five per cent or below tax slab, whereas only one per cent of the items touch the 40 per cent tax rate.
“Common man and middle class, their basic necessities and aspirations are the main focus for GST reforms. Ninety-nine percent of items are now either in the 5% category or below. Only one percent has gone to the 40% bracket,” Sitharaman said.
The Union Finance Minister noted that the industry representatives, including public sector companies and insurers, have assured the government of full support in implementing the GST reforms.
“If any company says otherwise, we will talk to them. Consumption will increase, and so will incomes,” she said.
Taking a dig at the Congress and opposition parties, Sitharaman mentioned that they are trying to take credit for the GST 2.0 reforms, which they had once termed the “Gabbar Singh Tax”.
“Those who once mocked the Goods and Services Tax as a ‘Gabbar Singh Tax’ are now trying to take credit for the government’s GST 2.0 reforms,” Sitharaman said.
The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.
5% slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.
While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.
Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.
Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance, no GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare are GST-exempt. (ANI)
