Delhi, 3 September (H.S.): The GST Council on wednesday approved a simplified two-tier GST rate structure of 5% and 18% after a marathon 10.5-hour session. The new rates will come into effect from September 22, marking a significant step in India’s next-generation tax reforms.

Prime Minister Narendra Modi announced the development on X (formerly Twitter), emphasizing the collaborative effort between the Union and State governments. He said the reforms aim to simplify GST procedures and ease the financial burden on citizens and businesses.

Recalling his Independence Day speech, Modi highlighted the government’s intent for broad-based GST rationalisation and process improvements, designed to enhance the ease of living and strengthen the economy. “The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy,” he said.

The Prime Minister noted that the reforms will benefit multiple sections of society, including farmers, MSMEs, the middle class, women, and youth. He added that the changes are expected to improve citizens’ lives and ensure ease of doing business, particularly for small traders and businesses.

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Hindusthan Samachar / Jun Sarkar