Chief Minister Yogi Adityanath, while addressing a press conference on Thursday, hailed the recent GST reforms as a “Diwali gift” from Prime Minister Narendra Modi to the nation.
He said, “The decision will provide relief from inflation, strengthen trade, and simplify the lives of citizens. Effective from September 22, coinciding with the beginning of Sharadiya Navratri, these reforms will directly benefit consumers, farmers, businesses, and ordinary families.”
Gratitude to Centre and Simplified GST Structure
The Chief Minister expressed gratitude to Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the landmark decision. He noted that the tax reforms announced by the Prime Minister on Independence Day have shown results within just 20 days, with the decisions taken at the 56th GST Council meeting on September 3 now coming into effect. According to him, this is not merely a tax change but part of a broader campaign to boost India’s economy.The Chief Minister highlighted that before the rollout of GST in July 2017, a web of complex taxes—VAT, sales tax, service tax, excise duty, entry tax, and entertainment tax—burdened consumers and businesses alike. He added, “GST unified these into a “One Nation, One Tax” system.
Now, the biggest reform within GST itself has been implemented. The earlier four-tier structure of 5%, 12%, 18%, and 28% has been simplified to just two slabs—5% and 18%. While a 40% rate will continue on select luxury items, the removal of the 12% and 28% slabs will bring significant relief to the common man. From kitchens to agriculture, housing construction to highways, and industry to trade, every sector stands to benefit.”Outlining consumer gains, the Chief Minister said household items such as milk, curd, cheese, shampoo, toothpaste, soap, bicycles, and baby products will now be taxed at only 5% or exempt altogether. This will ease daily expenses, enhance purchasing power, and stimulate demand in the market, which in turn will boost production.
Calling it historic for farmers and rural India, he said the tax on tractors, tyres, pesticides, and irrigation equipment has been cut to 5%, reducing farming costs and increasing productivity. This, he emphasized, will not only bring relief to farmers but also give a significant push to the rural economy.The Chief Minister announced that significant decisions have also been taken in the healthcare sector. GST on personal life and health insurance has been completely abolished, while taxes on medicines, oxygen, and testing kits have been reduced. This, he said, will make treatment more affordable and provide direct relief to citizens.
He added that the government has also eased the burden on vehicle purchases—reducing GST on cars and bikes from 28% to 18%, a direct cut of 10%. This move will not only enhance the purchasing power of ordinary families but also give a strong boost to the automobile industry, driving up production, creating new jobs, and energizing the economy.
Highlighting support for students, the Chief Minister said GST on notebooks, pencils, and other educational materials has been fully abolished, a major relief for parents and children alike. At the same time, he pointed out that while consumers and students have been given relief, the tax on harmful products like tobacco and pan masala has been raised to 40%.
