'GST reforms not dictated by external factors': Ashwini Vaishnaw amid US tariffs
Addressing the media, Vaishnaw said the reforms were in the works for over a year and have nothing to do with any external factors.
New Delhi: Union minister Ashwini Vaishnaw on Saturday said that the recent Goods and Services Tax (GST) reforms were not dictated by any external factors, including the imposition of 50% tariffs by the United States.
Addressing the media, Vaishnaw said the reforms were in the works for over a year and have nothing to do with any external factors. It was a promise Prime Minister Narendra Modi had made from the ramparts of the Red Fort during Independence Day that has now “been fulfilled”, he added.
“The preparation for GST reforms had started about one-and-a-half years ago...before the US elections. This initiative was taken in line with PM Modi’s clear goal of reform, perform, and transform. This GST reform will start a transformation journey of the country,” he said.
On September 3, following a meeting of the GST Council, the government announced a sweeping overhaul of the tax regime, with most goods and services now charged at the rates of 5% and 18%, with only so-called de-merit goods and sin products being charged at 40%. Many products have moved from 18% or 12% to a rate of 5%. And some have moved from 28% to 18%.
The rationalisation comes days after the 50% tariff imposed by the Trump administration. The punitive tariff rate — among the highest imposed on any US trading partner — stems from Trump’s August 7 executive order adding a 25% penalty for India’s Russian oil purchases on top of an existing 25% reciprocal tariff.
{{/usCountry}}The rationalisation comes days after the 50% tariff imposed by the Trump administration. The punitive tariff rate — among the highest imposed on any US trading partner — stems from Trump’s August 7 executive order adding a 25% penalty for India’s Russian oil purchases on top of an existing 25% reciprocal tariff.
{{/usCountry}}The Centre has asserted that the decision by the GST Council to rejig the rate structure has been taken with an eye on public good. PM Modi described the reforms as a “game changer”, and said the simplified slabs, lower input costs, faster digital compliance, and rising demand would boost Made in India products.
{{/usCountry}}The Centre has asserted that the decision by the GST Council to rejig the rate structure has been taken with an eye on public good. PM Modi described the reforms as a “game changer”, and said the simplified slabs, lower input costs, faster digital compliance, and rising demand would boost Made in India products.
{{/usCountry}}The minister added that the country’s economy is on the right track and with income tax relief provided for in the 2025-26 Budget, along with the GST rationalisation exercise, it is set for further growth.
{{/usCountry}}The minister added that the country’s economy is on the right track and with income tax relief provided for in the 2025-26 Budget, along with the GST rationalisation exercise, it is set for further growth.
{{/usCountry}}Meanwhile, Union agriculture minister Shivraj Singh Chouhan noted the tax reforms would benefit farmers, saying the Centre is aiming to reducing the cost of production in agriculture and increase overall output.
Addressing a press conferences in Bhopal, Chouhan said, “Our aim is to reduce the cost of production in farming and increase production...The farmers of the country will get a big benefit from the GST reforms.”
