Chennai

As high as 99% of all the goods which were earlier in the 12 per cent GST bracket have now been brought down to the 5 per cent GST bracket, Finance Minister Nirmala Sitharaman said Sunday.

She made the remarks while addressing a joint conclave of the Trade and Industries Association, titled 'Tax Reforms for Rising Bharat' in Chennai, Tamil Nadu.

The sweeping GST rationalisation and reforms unveiled after the GST Council meeting on September 3, once implemented, are expected to bring about a massive change across the country, directly impacting India's 1.4 billion citizens.

The tax cut decision was unanimously approved in the GST Council meeting with the consent of all states.

On September 22, the first day of Navratri, all changes in GST rates will come into effect, much before Diwali, which was indicated by the prime minister from the ramparts of the Red Fort on Independence Day this year.

Speaking at the Chennai event today, the Finance Minister emphasised the benefits of the latest GST reforms. The event was attended by Tamil Nadu BJP State President Nainar Nagendran, Federation of Tamil Nadu Traders' Association President Vikramraja, IIT-Madras Director Kamakoti, business leaders, and representatives from trade associations.

At the event, Sitharaman released two publications titled "GST 2.0 - Fuelling India's Growth" and "GST Reforms for Tamil Nadu's Growth".

In the event, Nirmala Sitharaman explained how GST tax cuts would benefit Tamil Nadu specifically. Certain goods have seen tax reduced from 18% to 5%, some others from 12% to 5%, and some even from 12% to 0%.

She emphasised that GST impacts citizens from morning to night through essential commodities.

She also pointed out that, in 2017, 65 lakh were registered under GST; today, that number has grown to 1.51 crore. If GST were truly a "Gabbar Singh Tax" as critics allege, taxpayers would not have increased so significantly, she added.

"Over 350 items have seen GST rates reduced, including essentials like groceries, packaged foods, household goods, and handicrafts like Thanjavur dolls. Refund issues raised by small businesses have been addressed, ensuring 90% refunds are processed quickly, with only 10% withheld for verification," she further said.

She added that GST reforms are not just about rate cuts but about building trust, boosting demand, and propelling India toward its 2047 vision. She acknowledged criticisms but affirmed that reforms would continue, especially in agriculture, MSMEs, food, and essential services.

Sitharaman concluded her address, asserting that GST reforms would play a crucial role in realising Prime Minister Modi's vision for India in 2047.

IIT Madras Director Kamakoti expressed gratitude for GST exemptions on research funding, stating it has been vital in supporting research and development for higher education.

He praised GST reforms as progressive, highlighting tax cuts on essential goods, educational items, and healthcare equipment, which would benefit middle- and lower-income families.

He noted that reducing the GST on consumer goods, such as TVs, washing machines, and small cars, would boost consumption, logistics, production, and job creation. He also applauded India's ability to build and scale GST's digital infrastructure within 20 days, managing millions of transactions flawlessly.

Federation of Tamil Nadu Traders' Association Vikramraja also lauded Prime Minister Narendra Modi's leadership, stating that India has risen to global prominence under his governance.

He recalled the challenges faced by traders during the GST rollout and how consistent dialogue with the central government brought reforms.

He welcomed the reduction of GST on groceries from 18% to 5% but urged authorities to address harassment from tax officials and to ensure the promised implementation of the trader welfare board.

Tamil Nadu BJP President Nainar Nagendran too praised Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, calling her a source of pride for Tamils in Delhi and Parliament.

He said India's rapid economic growth is reflected in its GDP, and GST rate cuts will further accelerate construction, electricity usage, and consumer demand for products like TVs.

He insisted that shopkeepers must clearly display the old and new prices of goods post-GST rate cut to ensure transparency for consumers.

In a historic move to simplify the Goods and Services Tax(GST), GST Council in its 56th meeting has reduced the GST structure from four slabs (5%, 12%, 18%, 28%) to two main rates--5% (merit rate) and 18% (standard rate) along with a 40% special rate for sin/luxury goods.

Sweeping changes have been made to what the government termed the next-generation GST (Goods and Services Tax) rationalisation.

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It came on September 3, just days after Prime Minister Narendra Modi announced it from the ramparts of the Red Fort on Independence Day. This is aimed at reducing the tax burden on citizens while stimulating economic growth.