GST reform will play vital role in making India a developed nation: BJP

The Centre has approved just two tax rates of 5 per cent and 18 per cent in the revamped GST plus a special rate of 40 per cent for luxury and sin goods.

Ahead of the roll-out of new Goods and Services Tax rates, the Bharatiya Janata Party (BJP) on Tuesday said the latest GST reform will play an important role in fulfilling the resolve of building a developed India.

Talking to reporters here, BJP spokesperson Guruprakash Paswan said Opposition parties are repeatedly raising questions about the country's economy, but the fact is global agencies IMF and the World Bank believe India is an economic hotspot in the world.

"The GST reform is the biggest economic reform. Earlier, about 35 different taxes were being collected, after which in 2017, the BJP government implemented One Nation One Tax (GST) across the country. Now, the central government has once again brought in more reforms in GST and reduced rates," he noted.

He said reform in the indirect tax regime brings five important benefits for the people of India.

"First is the simplification of the tax system and the second one is improvement in the quality of life of citizens," Paswan opined.

"It also fulfils the vision of Antyodaya of Pandit Deendayal Upadhyaya ji (a key BJP ideologue) which says benefits of economic development should reach the last person. The fourth thing is improving the ease of doing business," the ruling party's spokesperson stated.

"The last thing the GST reform did was to strengthen partnership between states and the Centre," he maintained.

Prime Minister Narendra Modi always says reform, perform, transform. Transformation will be seen on September 22 (the date of implementation of revised GST rates), Paswan affirmed.

"The inflation has come down and the GDP growth was 7.8 per cent (in April-June quarter of 2025). Congress leaders are doing politics and misleading people regarding GST. Everyone knows the Opposition people support the forces that want to break up India," he claimed.

One Nation One Tax means GST reform will remain the pillar of a developed India. The changes in GST will play an important role in realizing the resolve of a developed India, Paswan emphasised.

The Centre has approved just two tax rates of 5 per cent and 18 per cent in the revamped GST plus a special rate of 40 per cent for luxury and sin goods.