Delhi Chief Minister Rekha Gupta on Thursday said the rate cut in goods and services tax (GST) is a “big gift” for the country and will prove to be a milestone for the Indian economy.
The chief minister who attended her first GST Council meeting on Wednesday, also thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, saying the move will strengthen trade and businesses in the country.
“It is a very big gift for the country. The rate cut in Health Insurance and daily use items is a big relief for the crores of people in the country who are thankful to Prime Minister Narendra Modi,” she told reporters.
She said the GST Council passed the rate revision in GST with immense support. It is going to boost trade and businesses, and the move will prove to be a milestone in the Indian economy, she said. “Delhi is very happy, and I thank the prime minister on behalf of Delhi citizens for the nil GST on health insurance and educational items. Renewable energy has been supported, and it will immensely benefit Delhi as we are promoting solar energy and these reforms will give a fresh push to those initiatives,” she said.
The Chief Minister further highlighted that GST exemptions for agriculture and renewable energy will have far-reaching benefits for both Delhi and the nation.
She stressed that every decision taken in the GST Council meeting was the outcome of careful deliberation. “These reforms are not only far-sighted but also bold measures that will accelerate India’s economic growth.
At such a crucial juncture, it is unfortunate that the Congress is attempting to politicise the matter. This is a time to unite and support reforms taken in the national interest, not to score political points,” she said.
The GST Council, in its meeting on Wednesday, simplified the GST from the current four slabs to a two-rate structure — 5 and 18 per cent.
A special 40 per cent slab is also proposed for a select few items such as high- end cars, tobacco and cigarettes.
The GST tax rates on common-use items ranging from hair oil to corn flakes, TVs, and personal health and life insurance policies were slashed. Life and health insurance have been exempted from the GST, which earlier attracted 18 per cent tax.
The Government’s move to cut GST on medicines and medical devices while exempting lifesaving drugs from the levy will bring direct relief to the people.