The next-generation GST reforms, effective from today, will help everyone from a farmer to a "millionaire" in Mumbai, Union Minister of Tourism Gajendra Singh Shekhawat said on Monday.
"About 95 percent of goods will see a reduction in taxes. This will help people have more money in their pockets, which will boost consumption…and tourism in one important aspect of it," Shekhawat said, while speaking at Network18 'Reforms Reloaded' event in New Delhi.
The Minister added that there’s already an increase in domestic travel. For instance, there has been a 25 percent increase in travel to the route leading to "Mahakaal temple in Ujjain", Shekhawat noted.
From today, as many as 375 common-use items will witness a sharp reduction in prices, as most items will now be under the 5 percent GST slab, which were earlier in 12 and 18 percent slabs. On Sunday, Prime Minister Narendra Modi said that with the income tax relief combined with GST reductions, the savings for households will exceed by over Rs 2.5 lakh crore.
Shekhawat further said that before the GST regime, there were nearly 18 types of taxes which were similar but imposed across different states. "It was leading to over-taxation as well. That’s why bringing GST was important," said the Minister, adding that its introduction was meant to support the country’s economy.
"Earlier only a few were taking the burden of paying taxes. Now, we have a huge cohort of people who pay taxes in small or big amounts. The (2.0 reforms) will benefit MSMEs and the manufacturing sector," said Shekhawat.
For instance, starting November 1, 2025, low-risk applicants with monthly GST liability up to Rs 2.5 lakh will get automated registration within three working days. This is expected to cover nearly 96% of new applicants.
Additionally, 90 percent of refund claims on zero-rated supplies will be released provisionally based on risk assessment by the system from November; and a similar 90% provisional refund facility will be extended to Inverted Duty Structure (IDS) cases.
On claims of the Congress, Shekhawat said that Congress party burdened people with over-taxation. "They could have rolled out GST in their decade long tenure," said the Minister.
"Last election they were talking about EVM...then it was ECI and now 'vote chori'…I don’t know what’s going to come next," said Shekhawat. The Minister also said that PM Modi is a walking university, and everyone gets to learn something from him.
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