BJP, allies hail GST reforms as 'big gift' to middle class, say relief will boost economy

New Delhi, Sep 4 The GST Council has approved sweeping reforms in India's indirect tax regime, reducing the number of slabs and cutting rates on a wide range of essential goods and services.

The move was hailed by the BJP and its allies as a "big gift" for the middle class.

Under the new structure, only two primary slabs will remain -- 5 per cent and 18 per cent -- along with a higher 40 per cent rate for sin goods. Officials said the revised structure will leave more disposable income in the hands of the common man, which the government expects will cycle back into the economy and spur growth.

Several items, including groceries, footwear, textiles, fertilisers and renewable energy products, will now become cheaper.

Goods earlier taxed at 12 per cent and 28 per cent will largely shift into the two main slabs, easing the burden on households.

BJP Delhi President Virendra Sachdeva said the promise made by Prime Minister Narendra Modi during his Independence Day address has now been fulfilled.

"On 15th August, from the ramparts of the Red Fort, the Prime Minister had said that he would give the people of the country a big gift in GST reforms. That gift is now before the public. Household items have become cheaper. From the coming Navratri, there will be major benefits in the medical sector, in primary education and in many other everyday essentials where GST rates have been significantly reduced," he said.

Praising the Prime Minister's efforts, Sachdeva added, "The way India is growing to become one of the most powerful economies, PM Modi's efforts are behind it. From middle-class families to the lower-middle-class ones, everyone has some benefits in these GST reforms."

JD(U) national spokesperson Rajeev Ranjan described the changes as a "bumper" gift ahead of the festive season.

Speaking to IANS, he said, "This is not only a bumper Diwali gift for middle-class people but for the lower-middle class also, especially the homemakers of our country. Farmers will also benefit a lot after these reforms. Amid US tariff impositions, our traders will benefit a lot as now they will be able to sell their goods to the people at lower rates."

BJP leader Dilip Ghosh also welcomed the decision, emphasising that the common man deserves relief.

"The common people of the country are the ones whose money brings in all the taxes. They have to pay the tax. That's why, wherever possible, they should be given relief. For some time, this discussion has been going on about whether the government is receiving sufficient tax revenue through GST. So the government felt that relief should be given to the common people. That’s why this is a big step, a very good step," Ghosh told reporters.

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