New Delhi [India], September 5 : Stressing that negotiations are underway with the United States over 50 per cent tariff on Indian goods, Union Minister of Commerce and Industry Piyush Goyal said that there is no need to "panic" as India and US will come to an equitable, balanced and fair agreement.
In an interview with ANI on Thursday, Piyush Goyal assured that India and the US continue to have good relations.
He said, "I do not think there is any need to panic. We should allow the negotiations to happen. We continue to have good relations with the United States, and I am sure we will be able to resolve some of these issues and come to an equitable, balanced and fair agreement."
When asked about the timeline of the negotiations, he said, "There is never a timeline in negotiations. You should do it patiently, as you are doing it for the long term."
US President Donald Trump has imposed a 50 per cent tariff on Indian goods exported to the US. Initially, Trump announced 25 per cent tariffs on Indian goods, while later, he imposed another 25 per cent tariff, taking the total to 50 per cent, citing India's continued imports of Russian oil.
The secondary tariff came into force on August 27.
The higher duties are applicable to all Indian products that are either entered for consumption in the US or withdrawn from warehouses for consumption.
While the Goods and Services Tax (GST) reforms were announced amid the implementation of the US tariffs, Piyush Goyal said that the work on the tax reforms was being carried out for months, and the two have coincided by "chance".
He said, "Such reforms cannot happen overnight; the work on this has been going on for quite a few months. A group of the Finance Minister, Secretaries and Ministers have been working on this. It was expected that the compensation cess would be over in the next quarter. It's a matter of chance that the two have coincided."
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.
Along with this, the GST Council has decided to end the Compensation Cess on coal, carbonated beverages of fruit drink or carbonated beverages with fruit juice, mid-size and big cars.
Union FM Nirmala Sitharaman announced the decision on September 3, after she chaired the GST council meeting. This has reduced the previous GST slabs from 5 per cent, which consisted of essential goods and services, including food and kitchen items, agricultural equipment, handicrafts and small industries, and also medical equipment and diagnostic kits.
While the 18 per cent 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.
Additionally, there is a 40 per cent slab for luxury and sin goods, including tobacco and pan Masala, products such as cigarettes, bidis, and aerated sugary beverages, as well as luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.
Notably, some essential services and educational items are fully exempt from GST, including individual health, family floater, and life insurance.