'GST Bachat Utsav' from tomorrow: PM Modi announces price cuts
What's the story
Prime Minister Narendra Modi has announced a "GST Bachat Utsav" starting September 22, which he called a next-generation reform. The new Goods and Services Tax (GST) rates, effective from Monday, are aimed at reducing the cost of daily essentials and boosting consumption-driven growth. "This reform is not only about reducing prices but about creating new opportunities," PM Modi said in his address to the nation on Sunday.
Economic impact
GST reforms to benefit 99% goods
PM Modi said GST reforms will benefit 99% of goods, which now fall under the 5% tax slab. He emphasized that only having 5% and 18% slabs would help common goods get cheaper. He said these changes would not only reduce prices but also create new opportunities for economic growth across sectors. "When the purchasing power of people rises, it benefits every sector, from industry to agriculture to services. This is a reform that will touch every household," he said.
Public focus
Poor and neo-middle class getting double bonanza: PM Modi
The PM said that the GST reforms have been made a priority for the public good and that the poor and the neo-middle class are getting a double bonanza from these changes. He also urged citizens to take pride in purchasing and selling Swadeshi products, noting that India's prosperity depends on the strength of self-reliance.
Political response
Congress questions PM on Trump's remarks
The Congress party had earlier questioned whether PM Modi would address Trump's remarks on India-Pakistan and the concerns of H-1B visa holders. However, the Prime Minister focused his address on outlining the benefits of GST cuts and the government's economic roadmap. The GST rate cuts were announced by Finance Minister Nirmala Sitharaman earlier this month as part of a major indirect tax reform since July 2017.