GST Slab Reform Not BJP’s Decision, But Consensus of States: FM

Finance Minister Nirmala Sitharaman on Saturday accused Opposition parties of "misleading the country" over Goods and Services Tax (GST), clarifying that the decision to retain four tax slabs was not made by the BJP but by the Empowered Committee of state finance ministers.

According to Sitharaman, the GST Council has approved a new structure that will come into effect on September 22, coinciding with the start of Navratri. Under the revised system, there will be two primary slabs of 5% and 18%, along with a 40% slab for luxury items and so-called sin goods. Previously, GST had four tiers-5%, 12%, 18% and 28%-but the 12% and 28% categories have now been eliminated.

She described the changes as a "people's reform" aimed at benefiting families across the country by reducing the burden of taxation and encouraging consumption. "This reform will reach 140 crore people, and there will be no individual untouched by GST. Even the poorest of the poor, who buy small essential items, are impacted," Sitharaman said in an interview with PTI.

The minister stressed that the reform was not limited to tax rationalisation but also involved structural changes to simplify the system. "It's about ease of living, ensuring businesses can carry out operations under GST with greater ease," she added.

Highlighting the focus on the common man, Sitharaman pointed out that taxes on daily-use goods had undergone rigorous review, and in most cases, the rates were reduced significantly.