Hyderabad (Telangana) [India], September 22 : Expressing confidence that the new GST reforms will help everyone, Telangana BJP President Ramchander Rao on Monday emphasised that the reforms will have a wider positive impact on the Indian economy.
Rao lauded the GST reforms, stating that 99 per cent of the daily use items have come under the 5 per cent GST, which will help the poor, middle class, women, students, farmers and other sections of the society.
"The next generation GST reforms, which were introduced by the Modi government, are going to help the middle-class families, the poor, small traders and the manufacturing field of MSME. Almost 99 per cent of the subjects are under the 5 per cent GST. This is a significant reform in taxation that will benefit the poor, middle class, women, students, farmers, and everyone. At this juncture, when there is an international financial crisis, recession is there, and wars are going on between countries, it is a bold step by PM Narendra Modi's government and will have a possibly wider impact on the Indian economy," Rao told ANI.
The reform in the Goods and Services Tax structure, which was approved during the 56th meeting of the GST Council earlier this month, is set to come into effect from today. The current four-rate system will be replaced with a streamlined two-slab regime of 5% and 18%. A separate 40 per cent slab has been retained for luxury and sin goods.
This new framework is expected to ease compliance, reduce consumer prices, boost manufacturing, and support a wide range of industries, from agriculture to automobiles and from FMCG to renewable energy. It is intended to lower the cost of living, strengthen MSMEs, widen the tax base, and drive inclusive growth.
In the fast-moving consumer goods (FMCG) and dairy sector, major brands like Amul and Mother Dairy have announced substantial price cuts, reflecting the full benefit of the GST reduction.
Items like milk, butter, ghee, paneer, cheese, ice cream, snacks, and frozen foods have been brought under the 5 per cent slab, due to which 100 g of Amul butter will now cost Rs 58 instead of Rs 62, and Ultra High Temperature milk (UHT) has dropped to Rs 75 per litre from Rs 77. Mother Dairy has also slashed prices on milkshakes, paneer, ghee, and frozen products.