“We have increased the income and savings of the people of India. We are not going to stop here…As we continue to strengthen our economy, we will continue to reduce taxes. The process of GST reforms will go on continuously,” he said.
Modi believes that the structural reforms in GST are set to give new wings to India’s growth story. “GST registration will become easier, tax disputes will be fewer, and MSMEs will get speedy refunds,” he added.
Speaking about the GST reforms implemented on Monday, Modi said that the tax burden on people will reduce further as India’s economy strengthens going ahead.
The new GST reforms aim to boost savings and household consumption to directly benefit every section of society. “They will encourage greater growth and investments and accelerate the progress of every state and region,” PM Modi wrote in an open letter on Monday.
Under the new reform, the government has changed the GST rate system and reduced it to two slabs of 5% and 18%, to simplify it from the previous multi-slab system.Daily essentials such as food, medicines, soap, health and life insurance and many more items will now be either tax-free or fall in the lowest tax slab of 5%. Most of the goods that were earlier taxed at 12% are not shifted to the 5% slab.
as a Reliable and Trusted News SourceCombining the latest income tax rate cut and GST 2.0, Indians are expected to save around Rs 2.5 lakh crore this year.