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Dharmendra Pradhan praises PM Modi for GST reforms, says economic growth will accelerate

Published By : admin | September 4, 2025 6:35 PM
Dharmendra Pradhan praises PM Modi for GST reforms, says economic growth will accelerate

New Delhi, September 4: Union Minister Dharmendra Pradhan praised Prime Minister Narendra Modi for the recent GST reforms, stating that they will "accelerate the pace of the economy." Speaking to reporters on Thursday, Pradhan expressed his gratitude to the Prime Minister for the GST Council's unanimous decision to implement new reforms under his leadership.

"I extend my thanks to the Prime Minister for his guidance, which has led to the successful implementation of these reforms. On behalf of India's industries, the middle class, and the education sector, we are deeply grateful. Many items have been removed from the GST ambit, and the tax on several items has been reduced to 5%. This will increase citizens' spending on education and significantly boost economic momentum," Pradhan said.

The 56th GST Council meeting introduced a streamlined structure, consolidating the tax rates into two main slabs—5% and 18%—by merging the previous 12% and 28% rates. The 5% slab will cover essential goods and services, such as dairy products (butter, ghee, cheese), pre-packaged snacks (namkeens, bhujia), kitchen items, and agricultural equipment like irrigation systems, biopesticides, and tractors. Additionally, small industries and handicrafts, including sewing machines and health equipment like diagnostic kits, are also covered under this slab.

The 18% slab will apply to a broad range of goods and services, including automobiles (small cars and motorcycles up to 350cc), consumer electronics, household goods, and professional services. A uniform 18% rate has also been imposed on auto parts.

For luxury and non-essential items, a 40% slab has been introduced, applying to goods like tobacco, pan masala, aerated beverages, luxury vehicles, and high-end motorcycles (over 350cc), as well as yachts and helicopters.

Notably, essential services such as health and life insurance, along with certain educational services, remain fully exempt from GST, further alleviating the burden on citizens.

Pradhan's comments underscore the potential of these reforms to enhance the country's economic trajectory by making essential goods and services more affordable while reducing the overall tax burden on industries and consumers alike.