A day after the government rolled out a simplified two-slab structure under what is being dubbed as “GST 2.0,” Prime Minister Narendra Modi on Thursday hailed the GST reforms as a double dose of support and growth for India. He also rained fire on the UPA government (2004 to 2014) over its tax regime.On Wednesday, Finance Minister Nirmala Sitharaman announced sweeping changes cut taxes on a wide range of consumer essentials, medicines, and automobiles, while introducing a special high tax slab for luxury and sin goods.
The government, after the 56th meeting of the GST Council, approved the rationalisation of GST rates, abolishing the 12 per cent and 28 per cent slabs. The new slab structure will come into effect from September 22, the first day of Navaratri.
The Council cleared a two-tier tax structure with rates of 5 per cent and 18 per cent, along with a new 40 per cent slab for sin and luxury goods. However, tobacco products and cigarettes will continue to attract 28 per cent GST, plus compensation cess, till loans are repaid.