Prime Minister Narendra Modi, who is on his two-day visit to the poll bound Gujarat state, addressed a public rally at the foundation stone ceremony of a bridge between Okha and Bet Dwarka on Saturday and hailed recent reforms made in the Goods and Service Tax (GST). A day after GST council meet took place which was led by Finance Minister Arun Jaitley, PM Modi in Gujarat said, “Diwali has come early for our citizens due to the decisions taken in the GST Council.”
Further speaking on the changes made in the GST, PM Modi said, “We had said we will study all aspects relating to GST for 3 months, including the shortcomings. And thus, the decisions were taken with consensus at the GST council.” Finance Minister Arun Jaitley on Friday led the 3rd GST council meet along with other senior leaders and stakeholders and made some important and needed changes in the nation-wide tax system.
It was a unanimous decision taken by all the stakeholders in the GST council where tax rate cuts on various goods and services and brought a relief for small and medium businesses by easing in compliance norms. Cost of around 27 goods and services have been slashed after GST rate cuts on these services were unanimously decided in the GST council meet.
Among major changes made in the GST, now small taxpayers can get rid of tedious GST formalities and pay GST at a fixed rate of turnover) from Rs 75 lakh in turnover to Rs 1 crore. Also, small business can now file returns on a quarterly basis, the decision has been taken to increase compliance. Under this, restaurant businesses will pay GST at 5% rate, traders will pay 1% while manufacturing composition will be 2%.”
Earlier on Tuesday, PM Modi following the GST council meet had congratulated FM Arun Jaitley and his team for engaging with various stakeholders for extensive feedback which led to today’s recommendations. “GST is in line with our constant endeavor to ensure interests of our citizens are safeguarded and India’s economy grows. Composition scheme has been made more attractive and other facilitation measures will make the GST even more people-friendly and effective,” PM Modi had said.