Ahmedabad, Sep 4 (PTI) Gujarat Chief Minister Bhupendra Patel on Thursday thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for reducing the GST rates, saying the move will improve “Ease of Living” for everyone.

The CM said PM Modi has given a huge Diwali gift to 140 crore citizens in the form of 'NextGenGST' reforms.

“PM Modi has always made decisions keeping the common man in focus. The big reduction in GST will improve the ‘Ease of Living’ for everyone, including MSMEs, farmers, women, and youth. The tax burden on the common consumer will reduce and usher in happiness in their lives,” said the CM on X.

“Many congratulations to PM Modi on behalf of Gujarat for giving this gift,” he added.

In his Independence Day address from the Red Fort, the PM had pledged to introduce ‘NextGenGST’ to simplify citizens’ lives and boost the economy, Patel said in a statement.

By swiftly reducing the Goods and Services Tax (GST) rates, the PM has fulfilled this commitment within days, the CM said.

The GST Council on Wednesday cleared sweeping changes to the indirect tax regime, approving an overhaul of rates by limiting slabs to 5 per cent and 18 per cent effective from September 22, the first day of Navratri.

Patel said these landmark reforms will benefit middle-class families, farmers, small traders, and entrepreneurs. Citizens’ daily lives will become simpler, and India’s economy will gain new momentum and energy, he said.

State Finance Minister Kanubhai Desai stated that under the leadership of PM Modi, the 56th GST Council recommended reforms in three main areas – structural improvements, tax rate revisions, and Ease of Living – for the benefit of farmers, citizens, and small and medium entrepreneurs.

Desai said essential agricultural components like tractors, fertilisers, irrigation equipment, and other machinery were taxed between 12 and 18 per cent.

This has been brought down to 5 per cent, which will lower the cost of agricultural production. This important step will benefit farmers in Gujarat, the release said, quoting the minister. PTI PJT NR

GST rate overhaul reduces slab complexity and lowers consumer and agricultural input taxes, easing costs for farmers and small businesses. A regulatory overhaul of the Goods and Services Tax regime approved by the GST Council consolidates rate slabs into a two-tier structure effective at the start of Navratri and lowers taxes on consumer goods and agricultural inputs. Key agricultural items such as tractors, fertilisers, irrigation equipment and related machinery are shifted from higher tax bands into a lower consolidated rate, intended to reduce agricultural production costs and ease the tax burden on farmers, small traders, and MSMEs.