Lucknow

Uttar Pradesh will be the biggest beneficiary of the recently announced GST reforms, Chief Minister Yogi Adityanath said on Thursday, citing the state's large consumer base, rapid infrastructure growth, and thriving manufacturing hubs.

He said the tax changes will give a major boost to farmers, local industries, and employment while strengthening the state's transformation from a 'BIMARU' state to a prosperous one.

Adityanath thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the "transformative" reforms

Addressing a press conference here, Adityanath said that being the most populous state, Uttar Pradesh is also the country's largest consumer market.

"UP's infrastructure has grown tremendously - six cities now have metro rail services, 16 airports are functional and by the year-end, the country's biggest airport will also be operational," he said.

He highlighted that Uttar Pradesh has three crore farmer families, which will hugely benefit as agricultural equipment and other inputs will now be cheaper under the new GST regime.

"This will allow farmers to procure more at lower prices," the CM said.

The chief minister also underlined the benefit for Uttar Pradesh's footwear and garment industry, with GST on footwear up to Rs 2,500 now fixed at five per cent and a reduction in GST on ready-made garments.

"Agra and Kanpur are major hubs of footwear manufacturing. This will not just help the industry but also boost employment," he said.

Adityanath said the One District One Product (ODOP) initiative would also get a fillip with the GST cuts, further spurring local manufacturing and job creation.

He further pointed out that in the last eight years, Uttar Pradesh has complied with the FRBM limit while emerging from a 'BIMARU' state to one of the country's fastest-growing economies.

"The GST Council has announced tax rebates and reforms, which will come into effect from September 22. This is PM Modi's Diwali gift to the people," Adityanath said.

He said that before GST was rolled out in July 2017, all honest taxpayers were adversely affected as tax rates and cess were very high, and there was no integrated system of taxation.

"GST integrated these taxes under the principle of 'one nation, one tax', which led to a significant rise in GST registrations and direct benefits for the economy," he said.

CM Adityanath said the new reforms have simplified the structure with only two main tax slabs --” five per cent and 18 per cent -- which will benefit the common man, farmers and the masses across all sectors.

"These reforms are expected to give a growth push of Rs two lakh crore to the economy," he said, adding that items of daily household use will now have zero per cent GST.

"For farmers, the GST on agricultural equipment has been slashed to five per cent, which will help reduce costs and boost the farm economy," he said.

The chief minister also said health insurance will become significantly cheaper, while students will benefit as stationery and notebooks are now going to be cheaper.

READ MORE: Rajasthan's First Female Qazi Nishat Hussain led legal battle against triple talaq

"Yes, luxury items will become costlier, but these reforms will empower the poor and middle-class families," CM Adityanath added.