New Delhi: Union Minister Ashwini Vaishnaw emphasized on Saturday that India’s recent Goods and Services Tax (GST) reforms were not influenced by external pressures, including the 50% tariffs imposed by the United States. Speaking to reporters, Vaishnaw clarified that the GST restructuring, announced after a GST Council meeting on September 3, was planned over the past 18 months and aligns with Prime Minister Narendra Modi’s vision for economic transformation. The reforms, which streamline tax rates to 5% and 18% for most goods and services, were described as a fulfillment of Modi’s Independence Day pledge from the Red Fort, according to ANI.
Vaishnaw dismissed speculations linking the tax overhaul to US tariffs, stating that the initiative predates the US elections and is part of Modi’s “reform, perform, transform” agenda. He highlighted that the simplified tax slabs, reduced input costs, and enhanced digital compliance are expected to boost demand for Indian products, positioning the reforms as a “game changer” for the economy, as noted by Modi. The minister also underscored the reforms’ alignment with the 2025-26 Budget’s income tax relief measures, which together aim to drive economic growth.
Union Agriculture Minister Shivraj Singh Chouhan, addressing a press conference in Bhopal, emphasized the reforms’ benefits for farmers, noting that lower tax rates would reduce agricultural production costs and increase output. The GST Council’s decision is seen as a move to ease the tax burden on citizens, replacing the previous complex system with a more streamlined approach. Vaishnaw credited Modi’s guidance throughout the process, asserting that the reforms reflect a commitment to public welfare and economic progress. The new tax rates are set to take effect on September 22, coinciding with the start of Navratri, marking a significant step toward simplifying India’s tax regime.
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