Union Electronics and IT Minister Ashwini Vaishnaw on Monday said that the simplification of the Goods and Services Tax (GST) framework will make doing business in India easier and boost overall demand, adding nearly Rs 20 lakh crore to the country's GDP.
Speaking to the media, Vaishnaw stated that the reform is being welcomed nationwide because it enables people to save a greater portion of their income and makes the majority of everyday necessities more affordable.
Targeting the opposition, the minister said that while "there was only talk and no action" under the UPA administration, the NDA government has provided tangible relief through the GST.
Taxes on almost 370 items, including everyday necessities and life-saving medications, have been reduced overall. Previously subject to 5, 12, or 18 per cent GST, several items are now tax-free.
Union Finance Minister Nirmala Sitharaman has said that the reform will inject an additional Rs 2 lakh crore into the economy by enhancing consumers' disposable income.
Under the new structure, GST slabs have been reduced from four — 5, 12, 18 and 28 per cent — to two: 5 per cent and 18 per cent. A special 40 per cent rate will apply to luxury and sin goods.
Union Minister Ramdas Athawale also lauded the reforms and said they would take India's economy to greater heights.
Speaking to IANS, he said: "I believe that Prime Minister Narendra Modi has taken several good decisions in his 11 years, but this decision to reduce GST will take the country's economy to new heights. This decision to reduce GST will be very beneficial for the common man."
He also stressed the Prime Minister's appeal to encourage local businesses.
(With inputs from IANS)
