GST rate cuts to ease tax burden, boost economy: Ashwini Vaishnaw

The GST rate cuts will not only benefit the common people but also boost India's economy, Union minister Ashwini Vaishnaw asserted on Saturday and hit out at the Congress, alleging "heavy burden" of tax during its term at the Centre.

The GST Council's decision to bring all products, except those under the sin and luxury goods category, under 5 per cent and 18 per cent slabs, while reducing it to zero on a host of essential items, will come into effect from September 22, the first day of Navratri.

Addressing a press conference at the BJP headquarters here, Vaishnaw said, "The coming 22nd, the first day of Navratri, will bring a new happiness for all of us, for all middle-class families and for 140 crore citizens of this country."  The GST reforms will also serve as a catalyst in the economic development of the country, he said  "This reform has brought a big relief to the lives of 140 crore people of the country. Before 2014 (during Congress rule), there was a huge burden on common people due to the web of different types of taxes imposed on every item," the Information and Broadcasting Minister said.

Vaishnaw said the latest GST reforms and income tax exemption up to Rs 12 lakh announced earlier reflected Prime Minister Narendra Modi's commitment to the welfare of common people, including middle-class families, in the country.

The BJP leader said the government was working on the GST reforms for about one and a half years, with the prime minister continuously following the exercise and giving "guidance" at every step.

"This is a very important decision taken by Prime Minister Modi. He had given a new confidence to the country from the ramparts of the Red Fort. He has converted that resolve into reality with this announcement," he said.