GST has become simpler, says PM Modi
‘New rates to be effective from first day of Navratri’
New Delhi: GST 2.0 is a double dose of support and growth for the nation and the next-generation reforms have been done to support India’s progress in the 21st century, Prime Minister Narendra Modi said on Thursday.
His comments came a day after the GST Council approved a complete overhaul of the tangled Goods and Services Tax (GST) regime.
In an interaction with National Teacher awardees, Modi noted that five new gems (panch ratna) have been added to India’s vibrant economy through the GST reforms.
He said GST has become even simpler and new rates of 5 per cent and 18 per cent will become effective from first day of Navratri.
“GST 2.0 is a double dose of support and growth for the nation. Next generation reforms in GST has been done to support India’s progress in 21st century. Five new gems (panch ratna) have been added to India’s vibrant economy through GST reforms,” he said.
“Without timely changes, we cannot give our country its rightful place in today’s global situation. I had said from the Red Fort on 15 August this time that it is crucial to undertake next-generation reforms to make India self-reliant. I had also promised the countrymen that there would be a double blast of happiness before this Diwali and Chhath Puja,” he added.
The prime minister said that during Congress regime basic household items used to be “heavily taxed” and the BJP government has tried to address those issues for ease of common man.
Meanwhile, in a relief to farmers and consumers ahead of the festive season, the Goods and Services Tax Council has reduced tax rates on several dairy products, fertilisers, biopesticides and agricultural equipment.
The 56th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, on Wednesday approved significant rate cuts for the agriculture and dairy sectors.
The council decided to make Ultra High Temperature (UHT) milk and paneer completely tax-free by reducing the GST from 5 per cent to zero, as per the official statement. GST on condensed milk, butter, other fats and cheese has been reduced to 5 per cent from 12 per cent.
The GST has been slashed from 12 per cent to 5 per cent on various agricultural machinery, including fixed speed diesel engines of power not exceeding 15HP, hand pumps, nozzles for drip irrigation equipment and sprinklers, agricultural and horticultural machinery for soil preparation, harvesting and threshing machinery, composting machines and tractors (except road tractors for semi-trailers of engine capacity more than 1800 cc).
The reduced rates will also apply to self-loading agricultural trailers and hand-propelled vehicles like hand carts. GST on key fertiliser inputs, including sulphuric acid, nitric acid and ammonia, has been reduced from 18 per cent to 5 per cent.
The council also reduced GST from 12 per cent to 5 per cent on various biopesticides including Bacillus thuringiensis variants, Trichoderma viride, Trichoderma harzianum, Pseudomonas fluoresens, Beauveria bassiana, NPV of Helicoverpa armigera, NPV of Spodoptera litura, neem-based pesticides and Cymbopogan.
GST has been reduced to 5 per cent on micro-nutrients covered under the Fertiliser Control Order, 1985.
The council reduced GST to 5 per cent from 18 per cent on comprehensive tractor components including rear tractor tyres and tubes, agricultural diesel engines of cylinder capacity exceeding 250 cc for tractors, hydraulic pumps for tractors, and various tractor parts such as rear wheel rim, centre housing, transmission housing, front axle support, bumpers, brake assembly, gear boxes, trans-axles, radiator assembly and cooling system parts.
The decisions are expected to reduce input costs for farmers and make essential dairy products more affordable for consumers. The new rates will be effective from September 22.
