Gandhinagar (Gujarat) [India], September 8 : Representatives of several industry associations in Gujarat welcomed the Centre's new GST reforms, describing them as a step towards simplifying business operations and boosting industrial growth.
According to a release, under the leadership of Prime Minister Narendra Modi, the recently implemented Next-Gen GST reforms have been welcomed positively by Gujarat's business organisations.
In this regard, representatives of various industry associations of the state met Chief Minister Bhupendra Patel in the presence of Industries Minister Balwantsinh Rajput and expressed their gratitude to the Central Government for this initiative of the Prime Minister and the Government of India.
The representatives of the industry associations described these new reforms in the GST framework by the Central Government as a positive and inspiring step for industrial development. They also expressed hope that the new GST framework would simplify daily business operations and create a business-friendly environment with improved logistical ease.
Moreover, they conveyed confidence that these new reforms will accelerate and double the pace of industrial and commercial growth across the country, including Gujarat.
The delegation that met the Chief Minister to express gratitude included representatives from the Federation of Indian Spice Stakeholders, Wadhwan Industries Association, Sanand Industries Association, Federation of Industries of Gujarat, and Ahmedabad Engineering Manufacturers Association.
The 56th GST council approved on September 3 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. 5% slab consists of essential goods and services, including food and kitchen items like butter, ghee, cheese, dairy spreads, pre-packaged foods, agricultural equipment, handicrafts, medical equipment and multiple other things.
The 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.
Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.
Additionally, GST is not applicable to health and life insurance premiums, as well as education and healthcare services, such as certain services related to education and healthcare, which are also GST-exempt.