New Delhi, Sep 3 (PTI) Prime Minister Narendra Modi said on Wednesday that wide- ranging reforms approved by the GST Council will improve lives of citizens and ensure ease of doing business for all, especially small traders and businesses.

In a post on X, he said the Union government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy.

He added, "Glad to state that the GST Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts & reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth." Modi noted that he had spoken about his government's intention to bring the next-generation reforms in GST during his Independence Day speech.

The GST Council on Wednesday approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22.

Bihar Deputy Chief Minister Samrat Choudhary, who holds the finance portfolio, said that all states were on board for the rate rationalisation, and it was a consensus-based decision.

The rationalisation is expected to bring relief to people, with Union Finance Minister Nirmala Sitharaman saying that individual life insurance and health policies will be exempt from GST. PTI KR KVK KVK

GST rate rationalisation to a simplified two-tier framework will reduce compliance burdens and ease business for small traders. GST rate rationalisation and procedural reforms approved by the GST Council adopt a simplified two-tier rate structure and related process changes to reduce compliance burdens and support consumers, farmers, MSMEs and small traders. The Council reached a consensus decision and the package includes exemptions for certain personal life and health insurance policies and a defined implementation timetable.