Chandigarh, Sep 6 Haryana Chief Minister Nayab Singh Saini on Saturday said the Goods and Services Tax (GST) reforms announced by Prime Minister Narendra Modi from the ramparts of the Red Fort on Independence Day have been implemented within just a month.
Calling it ‘proof of Modi’s guarantee, which is always fulfilled’, Saini described the reforms as a milestone towards building an Atmanirbhar Bharat.
He told the media that the changes would also play a key role in realising the Prime Minister’s call for swadeshi and Make in India.
The Chief Minister said the 56th meeting of the GST Council, held on September 3, took several important decisions aimed at easing the burden on citizens, supporting businesses, and strengthening the economy.
Calling the decisions ‘welcome steps,’ he said rationalisation of GST rates would make essential consumer goods cheaper, boosting middle-class savings and fueling demand during the upcoming festive season.
CM Saini said the GST has simplified and made the taxation system more transparent. It has also removed barriers to trade between states and has realised Prime Minister Modi’s vision of ‘One Nation, One Tax, One Market’.
The Chief Minister said India will now have only two standard GST rates, i.e. 5 per cent and 18 per cent. The previous 12 per cent and 28 per cent slabs have been scrapped, while a special 40 per cent rate has been retained for ‘demerit’ goods.
The Chief Minister said the simplified classification would certainly reduce disputes and litigation, while lowering GST rates on commonly used goods and abolishing the cess would directly ease household expenses. The inverted duty structure on textiles and fertilisers has also been removed, reducing working capital blockages for dealers, he shared.
The Chief Minister said the registration process has been simplified, enabling automatic registration within three days for low-risk applicants, with system-based provisional refunds to be issued within set timelines.
Highlighting that the reforms primarily take into account farmers’ interests, the Chief Minister said Haryana, being an agrarian state, had urged the Council to reduce GST rates on agricultural equipment used for crop residue management, a request that was accepted. He expressed gratitude to Union Finance Minister Nirmala Sitharaman for this.
The Chief Minister said packaged milk and cheese have been made GST-free, while rates on ghee, butter, and dry fruits have been cut from 12 per cent to 5 per cent. Roti and paratha have been exempted entirely.
These steps, he said, will not only reduce inflation but also encourage traditional food businesses, strengthen food processing in Haryana, boost farmers’ value addition, and create rural jobs.
The Chief Minister said that the GST Council also lowered GST on irrigation and tillage machinery from 12 per cent to 5 per cent, reducing equipment costs. Bio-pesticides and fertiliser inputs like ammonia, sulphuric acid, and nitric acid will now attract only 5 per cent GST, promoting sustainable agriculture, he informed.
The Chief Minister announced that the GST rate for tractors has been reduced from 12 per cent to 5 per cent for engines with a capacity below 1800 cc, and from 28 per cent to 18 per cent for higher-capacity tractors.
CM Saini said this progressive step would encourage farmers to adopt modern machinery and accelerate farm mechanisation.
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