GST rate cut to benefit households, boost economy: Kalia

With the reduction in GST rates from September 22, prices of daily-use items have seen a significant decline, which would greatly benefit the public while simultaneously strengthening the country’s economy. A total of 375 items would become cheaper as a result of the revised GST structure, former Punjab minister and national executive member of the Bharatiya Janata Party (BJP), Manoranjan Kalia, said at a press conference here on Wednesday.

He was joined on the occasion by former Cabinet Minister Teekshan Sood, former Chief Parliamentary Secretary Bibi Mahendra Kaur Josh, BJP district president Nipun Sharma, BJP women’s wing leader Meenu Sethi, Dr Bindusar Shukla, Umesh Jain, Ashwini Gaind and other party leaders.

Kalia said the existing four GST slabs of 5 per cent, 12 per cent, 18 per cent and 28 per cent have now been simplified into two primary slabs — 5 per cent and 18 per cent — under what he described as “next-generation reforms.” However, he added that a 40 per cent GST would be levied on ultra-luxury items.

Kalia detailed savings on big-ticket consumer goods, citing motorcycles and scooters (up to 350cc), where buyers can expect to save around Rs 8,000. The purchase of televisions above 32 inches would see savings of up to Rs 3,500, while air conditioners would be cheaper by approximately Rs 2,800, due to the reduction in GST from 28 per cent to 18 per cent.

Kalia claimed buyers of small cars would benefit from savings of about Rs 70,000. For farmers, the revised GST rate on tractors up to 1,800cc has been cut from 12-18 per cent to just 5 per cent, leading to saving of Rs 40,000 per unit.