Ujjain (MP), Sep 4 (PTI) The reforms in GST structure demonstrate Prime Minister Narendra Modi’s commitment to the countrymen that he takes care of all, including entrepreneurs, despite the global turmoil, Madhya Pradesh Chief Minister Mohan Yadav said on Thursday.

MP Assembly Speaker Narendra Singh Tomar also praised the Centre’s decision, saying it will provide a major relief to the poor, farmers and common people.

“The way the country has projected its image to the world under PM Modi’s leadership is remarkable. The PM takes equal care of all sectors. Even in the current environment of global turmoil, he takes care of his countrymen, entrepreneurs, and the poorest of the poor,” Yadav said.

The all-powerful GST (Goods and Services Tax) Council on Wednesday announced that all common use items from roti/paratha to hair oil, ice creams and TVs will cost less, while tax incidence on personal health and life insurance will be brought down to nil.

It approved limiting slabs to 5 per cent and 18 per cent, effective from September 22. Almost all personal-use items will see rate cuts as the government looks to boost domestic spending and cushion the economic blow of the US tariffs.

Yadav said that Modi had announced in his Independence Day speech that people would soon get a bouquet of benefits. “As he said, those benefits (GST relaxations) will be available from Navratri (September 22),” Yadav said.

The CM also hailed the decision to slash GST from 12 per cent to nil on education material, particularly charts, pencils, globes, and notebooks, saying they are very important in the life of every student.

Yadav said the PM is fighting to save the country’s farmers from big global economic forces, and his directives are clearly visible with the reduction in GST on agricultural equipment from 18 per cent to 5 per cent.

“Reduction in GST on tractor tyres, bio pesticides, irrigation system, sprinkler, agriculture, horticulture, sharecropping, etc., from 18 per cent to 5 per cent shows our commitment (to farmers),” he said.

The levy has been reduced to zero from 18 per cent on all types of health insurance policies so that "every person remains healthy", he said.

Besides, relief has been given by doing away with the GST on lifesaving medicines, including cancer drugs, he said. “It is a matter of great joy for us that the poor, middle class and everyone who uses them in daily life will also get benefits,” Yadav added.

Assembly Speaker Narendra Singh Tomar called the step to reduce the GST rates from four to two slabs commendable and said it will provide relief to the poor, farmers and common people.

Speaking to reporters in the assembly premises after paying tribute to the former Speaker Ramkishore Shukla on the latter’s birth anniversary, Tomar said the next generation GST reforms will improve the living standards of all citizens.

While the 12 per cent and 28 per cent tax slabs have been abolished, keeping these items in 5 per cent and 18 per cent slabs will definitely reduce the prices of essential commodities, he said.

“The move to reduce GST on health insurance to zero is historic, as it will enable the common man to avail better healthcare facilities by getting health insurance,” Tomar said, adding that there will be no tax on food items like paneer, chhena, tetra pack milk, roti/paratha, khakra, and medicines for rare diseases and cancer. PTI MAS NR

GST rate rationalisation delivers broader relief and lowers taxes on essential goods, health insurance and farming inputs. The GST Council announced an overhaul realigning common-use items into two principal rate bands and reducing tax incidence across many personal-use and essential goods. The reform removes GST on education materials and lifesaving medicines, exempts personal health and life insurance from GST, and substantially lowers tax on agricultural inputs and equipment to relieve consumers and support farmers, effective from September 22, with the stated aim of stimulating domestic demand amid global economic pressures.