New Delhi [India], September 4 : Former NITI Aayog CEO Amitabh Kant hailed the Goods and Services Tax (GST) rationalisation by the Centre and called it a "bold and visionary step".
Congratulating Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, Amitabh Kant lauded the tax reforms for simplifying the structure and eliminating inverted duties.
Sharing an X post on Wednesday, Kant wrote, "A landmark reform. The reduction of GST rates to just 5 per cent and 18 per cent is a bold and visionary step. Simplifying the structure, rationalising rates and eliminating inverted duties will boost consumption, raise capacity utilisation, and drive fresh investment."
He added that the GST rationalisation will aid job creation and lift household incomes in the country.
"This, in turn, will fuel job creation, lift household incomes, and trigger a virtuous cycle of growth. At this critical juncture, this reform gives India's economy renewed momentum. This transformative move will accelerate our journey towards sustained prosperity. Congratulations to PM Narendra Modi, FM Nirmala Sitharaman, GST Council and to the Revenue Department," the X post read.
Earlier on Wednesday, in a major reform aimed at providing relief to households, farmers, businesses and the healthcare sector, Finance Minister Nirmala Sitharaman announced a sweeping reduction in GST rates on a wide range of essential items, automobiles, agriculture inputs, and electronic appliances.
The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.
On the essential items front, items of daily household use will now cost less. Products such as hair oil, shampoo, toothpaste, toilet soap bars, toothbrushes, and shaving cream, which earlier attracted 18 per cent GST, will now fall under the 5 per cent bracket.
Sitharaman announced a complete removal of GST on individual health and life insurance.
Farmers and the agriculture sector stand to gain significantly from these reforms as tractor tyres and parts, earlier under 18 per cent GST, will now be taxed at just 5 per cent, while tractors themselves will also see their rate reduced from 12 per cent to 5 per cent.