North 24 Parganas (West Bengal) [India], September 4 : BJP leader Dilip Ghosh lauded the government's decision to GST rates to two slabs on Thursday, calling it a "significant and substantial step".
Speaking to reporters here, the BJP leader said that there were discussions about this for a long time, as the government was receiving sufficient tax revenue from GST.
"All the taxes come from the money of the common people of the country... that is why they should be given relief wherever possible. There has been a discussion about this for a long time. The government is receiving sufficient tax revenue from GST, so it felt that the common people should be given relief. This is a significant and substantial step. Relief has been given in everything from cars to computers to clothes," Ghosh told reporters.
He further said that citizens should get an advantage as they are not afraid to pay taxes.
"This indicates that the country is economically self-sufficient, and its people are also not afraid to pay taxes, so they should be given the advantage of this," he said.
Finance Minister Nirmala Sitharaman on Wednesday announced a sweeping reduction in GST, aimed at providing relief to households, farmers, businesses and the healthcare sector.
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.
5% slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.
While 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.
Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance, no GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare are GST-exempt.