GST reforms to cut prices on essentials: UP FM Khanna

Over the next week, MPs, MLAs, and public representatives will visit markets to interact with traders and consumers and explain the benefits of the GST reforms

The government’s latest GST reforms promise lower prices on daily essentials, clothing, electronics, and medicines, aiming to ease household expenses and stimulate consumption nationwide, said Suresh Khanna, finance and parliamentary affairs minister, on Monday.

Suresh Khanna, finance and parliamentary affairs minister (Sourced)

“About 90% of items in the 28% slab have been brought down to 18%, and 99% of items in the 12% slab have been reduced to 5%. Taxes on some essential items have also been eliminated,” Khanna told media persons.

Khanna highlighted that Uttar Pradesh’s revenue has risen from ₹51,820 crore in 2016-17 to ₹1,14,638 crore, a 121% increase.

The reforms include a 5% tax on agricultural equipment and clothing up to ₹2,500, zero tax on stationery and some medicines, and 5% on certain other medicines. Health and life insurance are now exempt from the 18% tax, while electronics and dairy products, including milk and cheese, face no tax. Luxury and sin goods have been raised to a 40% tax. Previously, GST had four slabs: 5%, 12%, 18%, and 28%, which are now simplified to two slabs of 5% and 18%.