Mumbai: Maharashtra Deputy Chief Minister Eknath Shinde on Thursday hailed the major GST reforms announced at the 56th Council meeting, describing them as a 'sweetened Diwali gift' for the people of India. The Council decided to rationalise tax rates by merging the 12 per cent and 28 per cent slabs into two simplified categories of 5 per cent and 18 per cent, while continuing a 40 per cent levy on luxury and sin goods.
Eknath Shinde Hails PM Modi & FM
Shinde praised Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for what he called a historic step towards Atmanirbhar Bharat. “In the truest sense, Prime Minister Modi has sweetened the upcoming Diwali for the people of the nation. Congratulations also to our bold Finance Minister. On one hand, daily essentials, especially healthcare and insurance, become more affordable, bringing joy to citizens; on the other, small industries and businesses receive great relief,” Shinde said in a post on X.
Highlighting the broader implications of the reform, Shinde said India’s refusal to succumb to America’s increased tariffs showed the country’s determination to pursue self-reliance. “By raising the call for self-reliance, the confidence of Indians has been awakened. There is now no doubt that India will soon become the world’s third-largest economic power,” he added. Shinde concluded that the reform marks a decisive step in India’s journey towards a stronger, self-reliant economy and a more prosperous 'New India.'
Details On Revised GST Framework
Under the revised GST framework, the 5 per cent slab will cover essential household and agricultural items, including ghee, butter, cheese, dairy spreads, pre-packaged namkeens, bhujia and kitchen utensils. Agricultural equipment such as drip irrigation systems, sprinklers, tractors, tractor tyres and harvesting tools also come under this category. Small industries and handicrafts, as well as critical medical equipment and diagnostic kits, have also been included in the 5 per cent bracket.
Revised GST rates |
The 18 per cent slab has been set as the standard rate for most goods and services, including consumer electronics, household items, professional services, and the automobile sector. Small cars and motorcycles up to 350cc are also placed in this bracket, while a uniform 18 per cent applies to all auto parts.
The 40 per cent slab remains applicable to luxury and sin goods such as tobacco products, pan masala, aerated sugary drinks, high-end motorcycles above 350cc, luxury cars, yachts, and helicopters.
