Goods and Services Tax / Big relief in taxes before Diwali! Common man will benefit in this way

Goods and Services Tax: Finance Minister Nirmala Sitharaman announced in an important meeting with ministers on Wednesday that the government is moving rapidly towards next generation GST (Goods and Services Tax) reforms. The main objective of these reforms is to directly benefit the common man, farmers, middle class and small traders (MSME). The Finance Minister clearly said that the change in GST rates will not only improve the lives of the people but will also provide relief from inflation. It is expected that the government will implement these reforms by Diwali, so that the public can get additional relief during the festive season.

How will farmers and small traders benefit?

The Finance Minister said that the proposed reforms are focused on goods and services related to agriculture and small industries. Many essential goods, such as agricultural equipment and items used in small businesses, will be included in the lower GST slab. This will reduce the tax on these goods, which will reduce the cost of farming for farmers and MSME will benefit in production. For example, there is a plan to reduce tax rates on fertilizers, seeds, and small machinery equipment. This will not only reduce the cost of production, but will also help small traders to compete in the market.

Everyday goods will become cheaper for the middle class

These reforms will be no less than a boon for the middle class as well. The Finance Minister said that the government is planning to reduce GST rates on consumer goods related to everyday needs. This includes household goods, electronic equipment, insurance services and medical services. For example, reducing tax on kitchen appliances, such as mixers or washing machines, and expenses related to health services will provide financial relief to the middle class. This will increase their savings and improve their standard of living.

Government's plan: Making GST simple and rational

• The Finance Minister spoke about three major steps to further simplify the GST system in the meeting:
• Simplification of tax slabs: The government aims to include most goods and services in only two major tax slabs—5% and 18%. This will simplify the tax structure and make it easier for people to understand the tax rates.
• Structural reforms: The process of GST registration and return filing will be made easier. The digital platform will be made more user-friendly for small traders.
• Cost reduction: By reducing taxes on essential commodities, the government aims to control inflation and provide relief to consumers.

Expectation of relief in festive season

The government plans to implement these reforms by Diwali, so that the public can get financial relief during the festive season. This will not only increase consumer demand, but small traders and MSMEs will also benefit in festive sales. The Finance Minister also added that these reforms will help strengthen the Indian economy in the long run.