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Modi, Narendra

PM Modi Announces "GST Bachat Utsav," Extends Income Tax Exemption, and Emphasizes Swadeshi Reforms

Strategic Insights

— 1 min read

Prime Minister Narendra Modi, in an address to the nation on Sunday, heralded the rollout of the new Goods and Services Tax (GST) rates as a "GST bachat utsav," promising that medicines, insurance, and daily essentials will get cheaper from tomorrow. Modi stressed that the income tax exemption for those earning up to Rs 12 lakh is a relief for a major section of society and a "double bonanza" for the poor, neo-middle class, and middle class. He highlighted that the reforms will ease doing business, attract investment, and give a boost to consumption, especially with the extended income tax exemption.

Key Takeaways:

  • The new GST rates will come into effect from September 22, reducing the tax on about 375 goods and services, including kitchen staples, electronics, medicines, and automobiles.
  • The income tax exemption has been extended to those earning up to Rs 12 lakh, benefiting the poor, neo-middle class, and middle class.
  • The GST Council decision aims to ease doing business, attract investment, and give a boost to consumption.
  • The reforms will significantly benefit micro, small, and medium enterprises (MSMEs), while also lifting the prospects of farmers, women, traders, shopkeepers, and youth.
  • Modi urged citizens to promote swadeshi goods, likening the current push to the Swadeshi movement that bolstered India's freedom struggle.
  • The changes stem from a GST Council decision earlier this month, which approved a two-slab system of 5 per cent and 18 per cent, replacing the existing 5, 12, 18, and 28 per cent structure.
  • Ultra-luxury items will attract a 40 per cent levy, while tobacco and related products will remain in the 28 per cent plus cess bracket.

Statistics:

  • The new GST rates will reduce the tax on about 375 goods and services.
  • The income tax exemption is extended to those earning up to Rs 12 lakh.
  • The GST Council decision aims to ease doing business and attract investment.
  • The reforms will benefit about 375 goods and services, including kitchen staples, electronics, medicines, and automobiles.
  • The new GST rates will come into effect from September 22.

Sources:

  • IE Online Media Services Pvt. Ltd.
  • Contify.com

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