Prime Minister Narendra Modi on Thursday hailed the wide-ranging reforms approved by the all-powerful Goods and Services Tax (GST) Council and called them the biggest decision since the Independence of India. Interacting with National Awardee Teachers at 7, Lok Kalyan Marg in Delhi, the Prime Minister said GST has become simpler and called the reforms 'double dhamka' ahead of Diwali.
He said the GST reforms are a 'double dose' of support and growth for the country, adding that they have added five gems (panch ratna) - a simple tax system, improve quality of life, boost consumption and growth, ease of doing business and cooperative federalism - to the Indian economy.
"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," PM Modi was quoted as saying by news agency ANI.
"Now GST has become even simpler... On 22 September, which is the first day of Navratri, the next gen reform will be implemented as all these things are definitely related to the 'Matrishakti'," PM Modi added.
PM Modi hits out at Congress
PM Modi also slammed the Congress over its stance on GST, saying the grand old party had even taxed everything, including daily essentials, agricultural products and even toffees for children, when it was in power. In his remarks, PM Modi said if that system had continued, people would have paid Rs 20-25 tax on buying anything for Rs 100.
However, he said, his government aims to increase the savings of the people and improve their lives. "When GST was implemented eight years ago, the dream of many decades came true. This discussion did not start after Modi became the Prime Minister. These discussions used to happen before as well, but no work was ever done," he said.
GST Council approves overhaul
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, on Wednesday approved a complete overhaul of the goods and services tax regime, reducing rates on common-use items ranging from hair oil to corn flakes, TVs, and personal health and life insurance policies.
As per the GST Council, there will now be two rate structures - 5 and 18 per cent, instead of four slabs - 5, 12, 18 and 28 per cent. It, however, proposed a special 40 per cent tax slab for products like high-end cars, tobacco and cigarettes. The new rates will be implemented from September 22.
