New GST reforms open path for economic growth, citizen welfare: CM

Tripura Chief Minister Prof. Dr Manik Saha on Wednesday said that the new GST reforms have opened a new horizon to improve the quality of life of common citizens.

He said that the economic condition of both the country and the state is becoming stronger through the GST system, and the amount of revenue collection has also improved due to the GST reforms.

Dr Saha said this while addressing a workshop on the Benefits from Next Generation GST held at Muktadhara Auditorium in Agartala.

At the event, Dr Saha said that after India gained independence, Prime Minister Narendra Modi successfully implemented the concept of One Nation, One Tax, which no one could have imagined before.

“We had seen different types of taxes earlier such as Excise Duty, Customs Duty, Service Tax, Value Added Tax, Central State Tax, Luxury Tax, Entertainment Tax, etc. In place of all these, the Prime Minister has shown the right direction to the people of the country. Under his guidance, GST has been introduced across the nation, and the development of the country is accelerating through this tax reform. With the introduction of this tax system, the country's economy has moved from the 11th position to the 4th position,” he said.

Dr Saha added that the present goal is to build Viksit Bharat 2047.

“For this purpose, we have also prepared a roadmap for Viksit Bharat 2047. Earlier, there were five stages in the GST structure. Now, it has been simplified to two slabs — 5% and 18%. This has benefited the common people greatly. GST is a people-friendly decision made keeping the welfare of the common man in mind. Under this system, people can save at least 4% on their monthly expenses,” the Chief Minister said.

He further explained that earlier, goods vehicles had to stop at various toll or naka points along national highways, but now they can reach their destinations directly.

“Previously, nakas were known as points of corruption. Now, due to the removal of these stops, the time taken by goods vehicles to reach their destination has been reduced by 33%. This has also led to significant savings in fuel costs. Along with this, the economic condition of the country and the state is getting much stronger through this system,” Dr Saha added.

He also mentioned that the amount of revenue collected through GST reforms has improved greatly.

Providing more details, the Chief Minister said that under the new GST reforms, essential items such as milk, chickpeas, and bread have been made tax-free.

“Various household products, including soap, shampoo, toothpaste, and bicycles, now attract only 5% tax. Similarly, items such as salt, sauce, pasta, noodles, chocolate, butter, and ghee have been reduced from 12% or 18% to 5%. This has provided major relief to common and middle-class families. Additionally, life insurance and health insurance have also been made GST-free. Due to the reduction in GST, life-saving medicines, medical equipment, diagnostic kits, and medical devices are now taxed at either zero or 5%. Moreover, farmers’ tractors and rice harvesters will now come under only 5% tax. The tax on cement purchases has been reduced from 28% to 18%, which will help save money in building construction,” he said.

Finance Minister Pranajit Singha Roy, Finance Secretary Apurba Roy, and other senior officials were present as distinguished guests at the event.