New Delhi, Sep 4
The Central government has given a major Diwali gift to the common citizen by reducing GST rates, economists said, noting that this move will not only boost demand during the festive season but also help offset the losses caused by recent US tariffs.
CA Praveen Sahu added that the two-tier GST structure of 5 per cent and 18 per cent, with nearly 80 per cent of goods falling under the 5 per cent slab, will significantly benefit the general public. According to him, this reform will increase purchasing power and stimulate consumption.
Economist Rajiv Sahu described it as the biggest tax reform since the introduction of GST in 2017. He emphasised that it will provide immediate relief to consumers, encourage spending, support industries, and strengthen the overall economy.
Economist Ajay Rotti particularly appreciated the reduction of GST on health insurance from 18 per cent to zero. He called it good news for the public and a historic step that will also benefit MSMEs by lowering the costs of essential goods. This, he said, will boost consumption and further strengthen the economy.