Chennai (Tamil Nadu) [India], September 14 (ANI): Finance Minister Nirmala Sitharaman on Sunday announced that 99% of goods previously taxed at 12% under GST will now fall under the 5% slab, during a joint conclave of the Trade and Industries Association titled ‘Tax Reforms for Rising Bharat’ in Chennai.
The GST rationalisation and reforms, approved unanimously at the GST Council meeting on September 3, are expected to bring sweeping changes nationwide, directly impacting India’s 1.4 billion citizens. The new rates will take effect from September 22, the first day of Navratri, ahead of Diwali.
Speaking at the event, Sitharaman highlighted the benefits of the reforms, noting that over 350 items, including groceries, packaged foods, household goods, and handicrafts like Thanjavur dolls, have seen tax reductions. Some items have seen rates drop from 18% to 5%, others from 12% to 5%, and a few even from 12% to 0%. She stressed that GST affects citizens daily and pointed out that the number of registered taxpayers has increased from 65 lakh in 2017 to 1.51 crore today.
“GST reforms are not just about rate cuts but about building trust, boosting demand, and propelling India toward its 2047 vision,” Sitharaman said. She added that the government has addressed refund issues for small businesses, ensuring 90% of refunds are processed quickly, with only 10% held for verification.
IIT Madras Director Kamakoti welcomed GST exemptions on research funding, calling them vital for higher education and R&D. He praised the reduction of GST on consumer goods such as TVs, washing machines, and small cars, noting the expected boost to consumption, logistics, production, and employment.
Vikramraja, President of the Federation of Tamil Nadu Traders’ Association, praised the central government’s responsiveness during the GST rollout and welcomed the reduction of GST on groceries from 18% to 5%, while urging authorities to address tax-related harassment and ensure the implementation of the trader welfare board.
Tamil Nadu BJP President Nainar Nagendran also lauded Prime Minister Narendra Modi and Finance Minister Sitharaman, emphasizing that clear price displays reflecting the GST reduction would ensure consumer transparency.
The historic reform simplifies the GST structure from four slabs (5%, 12%, 18%, 28%) to two main rates—5% (merit rate) and 18% (standard rate)—along with a 40% special rate for sin and luxury goods. These next-generation reforms aim to reduce the tax burden on citizens while stimulating economic growth, reflecting the government’s commitment to a citizen-centric and consumption-driven economy. (ANI)
About The Author
