New Delhi, Sep 4 — In a landmark decision, the GST Council has approved sweeping reforms to India’s indirect tax regime, reducing the number of slabs and cutting rates on a wide range of essential goods and services.
Under the new structure, only two primary slabs — 5 per cent and 18 per cent — will remain, along with a higher 40 per cent rate for sin goods. Officials said the changes would increase disposable income for households, expected to boost consumption and economic growth.
Groceries, footwear, textiles, fertilisers and renewable energy products are among the items set to become cheaper. Goods earlier taxed at 12 per cent and 28 per cent will largely be shifted to the two main slabs, reducing the financial burden on households.
The move has been hailed by the BJP and its allies as a major relief for the middle class. BJP Delhi President Virendra Sachdeva said the reforms fulfilled Prime Minister Narendra Modi’s Independence Day promise. “The big gift announced from the Red Fort is now in front of the people. Household items have become cheaper, and from Navratri, there will be significant benefits in the medical sector, education and everyday essentials,” he said.
JD(U) national spokesperson Rajeev Ranjan described the reforms as a “bumper Diwali gift,” noting that not just middle-class families but also farmers and traders would benefit. “Homemakers will feel the relief, and our traders will gain as goods become more affordable amid global tariff challenges,” he said.
BJP leader Dilip Ghosh echoed the sentiment, emphasising the need for tax relief to the common man. “It is the people’s money that contributes to tax revenue. Wherever possible, they should be given relief. This is a big and welcome step,” he remarked.
