THE JHARKHAND STORY NETWORK
New Delhi, Sept 5: The Government of India has introduced significant changes to the Goods and Services Tax (GST) structure, reducing the system to two slabs—5% and 18%. Officials say the reform will simplify taxation, lower consumer costs, and provide relief to multiple sectors of the economy.
“This reform is not just about changing tax rates. It is about strengthening the economic framework of the country and ensuring that every section of society benefits,” said Devesh Tiwari, BJP leader and Member, State Level Monitoring Committee (Jharkhand), Ministry of Rural Development.
Simplified Structure
The earlier multi-slab GST structure has been streamlined into two categories. According to Tiwari, the move will “make the taxation process transparent and easier for both citizens and businesses.”
Impact on Consumers
Prices of several daily-use items, including LPG cylinders, flour, milk, paneer, bread, parathas, and snacks, are expected to come down.
“This will bring relief to families and ease their household budgets during the festive season,” Tiwari, who hails from Palamu in Jharkhand, said.
Healthcare Changes
The government has abolished the 18% GST on health and life insurance. Medicines will now attract 5% GST, while cancer medicines have been exempted from tax.
“By reducing the cost of healthcare and insurance, we are ensuring that quality medical services become accessible to ordinary citizens,” Tiwari noted.
Automobile Sector
GST on small cars, three-wheelers, and motorcycles with engines below 350 cc has been reduced from 28% to 18%. The change is expected to help both consumers and manufacturers.
“This will help middle-class families purchase vehicles at lower prices, while also giving a push to the automobile industry,” Tiwari said.
Support for Farmers
Agricultural equipment such as sprinklers, drip irrigation systems, and harvesting machines will now be taxed at 5% instead of 12%.
“This reduction will bring down farmers’ production costs and make Indian agriculture more competitive,” Tiwari explained.
Industry and Services
Consumer appliances, including air conditioners, dishwashers, TVs, and monitors, will now be taxed at 18%, compared to 28% earlier for large-screen models. Service sectors such as salons, fitness centers, and yoga will see GST reduced from 18% to 5%.
“These changes will encourage industry growth and wider access to services,” Tiwari said.
Government’s Stated Goal
Tiwari said the reforms align with the government’s focus on inclusive growth. “This decision proves that the government is not just focusing on infrastructure but also on ensuring that farmers, workers, traders, entrepreneurs, and middle-class families all benefit,” he said.
He also cited Prime Minister Narendra Modi’s earlier remark that “now even a person wearing slippers will sit in an aeroplane,” calling the reforms “a step towards that vision.”
According to Tiwari, the reforms are intended to address inflation while also contributing to long-term economic resilience. “This is a historic step towards making the country more prosperous and self-reliant,” he said.
