Union Minister Ashwini Vaishnaw said that the recently announced Goods and Services Tax (GST) reforms has nothing to do with any external factors as the works for them had started around one-and-a-half
years ago.
While addressing a press conference on Saturday, Vaishnaw dismissed the speculations over the reduction in tax rates on a wide range of goods due to the possible impact of US President Donald Trump’s 50% tariffs on Indian goods.
“The preparation for GST reforms had started about one-and-a-half years ago… even before the US elections. This initiative was taken in PM Modi’s clear goal to reform, perform, and transform. This GST reform will start a transformation journey of the country,” Vaishnaw said as quoted by news agency ANI.
“This one-and-a-half-year-long GST reform exercise has now been finalised…In every step, PM Modi has guided us… External factors have no role to play in this next-generation reform,” Vaishnaw added, in apparent reference to US tariffs on Indian goods.
He claimed that the GST reforms are expected to not just improve the tax system but also help transform India’s economy in the coming years.
The Union Minister Vaishnaw explained that India’s tax system was complicated before 2014. He cited instances from the pre-GST era, when goods-laden trucks used to have long queues at state borders for necessary clearances. Now, the process is seamless, the Minister said.
“Before 2014, the taxation system was very complex, and goods were taxed at multiple levels. GST has made it simple. This rationalisation and simplification in GST reforms will make people’s lives easier,” he said.
The income tax relief provided for in the 2025-26 Budget, coupled with GST rate rationalisation, is set to further push India’s economy to another level, Vaishnaw said.
“The promise PM Modi had made from the ramparts of the Red Fort have been fulfilled,” he said.
Earlier, PM Modi described the reforms as a “game changer”, and said the simplified slabs, lower input costs, faster digital compliance, and rising demand would boost Made in India products. He had announced the launch of GST reforms before Diwali during his Independence Day speech on August 15.
The GST Council rationalised the indirect tax structure, cutting the current four slabs down to two in a landmark decision that promises to ease household budgets and lift consumer sentiment. Answering the Indian middle class’ long-pending demand, the GST Council scrapped the 12% and 28% rates, retaining only the 5% and 18% slabs.
Items earlier taxed at the higher rates will now largely migrate to the lower two slabs, making essentials, personal care items, restaurant meals, travel, gadgets and even automobiles more affordable.
On September 22, the first day of Navratri, all changes in GST rates will come into effect.
(With inputs from agencies)
