New Delhi: Union Home Minister Amit Shah called the new GST structure, effective today, a “trust-based tax system.” He said it will boost production and consumption across India.
Speaking to NDTV, Mr Shah said people will pay less for electricity, cement, food, healthcare, insurance, automobiles, and agricultural products. He added that taxes now help run the country, not just increase government revenue.
GST collections have risen from Rs 80,000 crore to Rs 2 lakh crore. The government will now provide relief on many items.
The Minister criticized the Opposition for discrediting GST earlier and later claiming credit. Congress-led states had opposed GST before because merging 16 taxes into one could reduce state revenues.
GST 2.0 replaces four tax slabs with just two: 5% and 18%. Essentials, electronics, automobiles, insurance, and lifestyle services now cost less. Ultra-luxury items will attract 40% tax. Tobacco remains at 28% plus cess.
Prime Minister Narendra Modi called this reform a “big step towards Atmanirbhar Bharat.” He said it will save money for middle-class families, traders, and youngsters. The move will also attract investment and support growth.
