Delhi CM: GST reforms to boost stability for small and large firms

New Delhi [India], September 4 (ANI): Delhi Chief Minister Rekha Gupta on Thursday praised the GST council's decision to cut Goods and Services Tax (GST) rates, and said it will help all small and large businesses to operate with great stability. She also said that the Prime Minister has given a gift to the common citizens of the country. Speaking to the reporters, Rekha Gupta said, "I want to thank the Prime Minister; he has given a great gift to the common citizens of the country. Such significant relief will not only benefit the common man but also the healthcare sector, insurance, household goods, electronics, education, and many other sectors, for which the public thanks Prime Minister Modi." "Understanding the sentiments of the people, he has reconsidered every issue one by one... This will enable all our small and large businesses to operate with great stability. I believe this will prove to be a major milestone. Thanks to Prime Minister Modi and Finance Minister Nirmala Sitharaman," CM Gupta added.

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. (ANI)