GST reforms, relief for minorities: Can Modi govt’s twin decisions give BJP a boost in poll-bound Bihar?

Modi government’s big decision to rationalise GST rates to two slabs -- 5% and 18% -- directly aims to lower tax burden on the common people – a move that could resonate strongly in Bihar

Two key announcements -- one related to persecuted immigrants from neighbouring nations and second one over Goods and Services Tax (GST) revamp -- both within a gap of two days could have considerable political implications, especially with Assembly polls due in the key states of Bihar, Assam and West Bengal.

Can the twin decisions woo Bihar public?

Modi government’s big decision to rationalise GST rates to two slabs -- 5% and 18% -- directly aims to lower tax burden on the common people – a move that could resonate strongly in Bihar.

With household items such as shampoo, toothpaste, food and kitchen items like butter, ghee, cheese, as well as agricultural equipments like tractors, drip irrigation systems, sprinklers, set to get cheaper, middle class section, women and farmers -- the backbone of society — are expected to gain the most.

Moreover, with zero GST on health and life insurance, as well as on 33 life-saving drugs and medicines, the government has signalled a clear priority on public health -- an added benefit for citizens.

Furthermore, by exempting minority groups from Afghanistan, Bangladesh and Pakistan who entered India before December 31, 2024 without valid travel papers from prosecution under the Immigration and Foreigners Act, 2025, the BJP’s boarder narrative on Hindu protection has been strengthened.

While Bihar’s politics is shaped more by caste equations, unemployment, and local governance, the move -- coinciding with unrest against Hindus in Bangladesh -- enables the BJP to frame a narrative of compassion for minorities.

Middle-class relief ahead of Delhi polls: How it worked?

Earlier this year, in a big relief to middle-class taxpayers, finance minister Nirmala Sitharaman announced that income tax would not be payable up to income of Rs 12 lakh. The move was announced in the run up to Delhi Assembly polls on February 5.

The results, albeit not strictly linked, worked to the BJP’s advantage as it staged a comeback after 27 years, ousting the Aam Aadmi Party that had built support among the poor and lower-middle-class through its schemes.

Directive over persecuted immigrants from neighbouring nations

The first announcement pertains to persecuted immigrants from the neighbouring nations Afghanistan, Pakistan and Bangladesh belonging to six minority communities – Hindu, Christian, Sikh, Buddhist, Jain and Parsi.

The government on Tuesday issued a directive exempting penal action against minorities from these neighbouring nations, who entered India on or before December 31, 2024 without a valid passport or travel document or where the validity of their passport and document have expired.

The provision, which forms part of the Immigration and Foreigners (Exemption) Order, 2025 notified by the MHA Monday, comes as a big relief to a large number of people, who crossed over to India after 2014.

According to the Citizenship (Amendment) Act (CAA), which came into force last year, members of these persecuted minorities who came to India on or before December 31, 2014, will be granted Indian citizenship.

The second announcement pertains to sweeping reduction in GST, aimed at providing relief to households, farmers, businesses and the healthcare sector.

GST reforms timed well?

The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

Union FM Nirmala Sitharaman announced the decision on September 3, after she chaired the GST council meeting.

Sitharaman said that the changes were brought about keeping the interests of the common man and the middle class in mind. "Items on which GST has been reduced to 5 percent — hair oil, toilet soap, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other household articles."

The 18 per cent slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services -- bringing it down from 28 per cent.

Additionally, there is a 40 per cent slab for luxury and sin goods, including tobacco, products such as cigars and cigarettes, aerated sugary beverages, as well as luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Hon’ble Prime Minister Shri @narendramodi announced the Next-Generation GST Reforms in his Independence Day address from the ramparts of Red Fort.

Working on the same principle, the GST Council has approved significant reforms today.

These reforms have a multi-sectoral and… pic.twitter.com/NzvvVScKCF

— Nirmala Sitharaman Office (@nsitharamanoffc) September 3, 2025

Notably, some essential services and educational items have been fully exempt from GST, including individual health, family floater, and life insurance.

With everyday goods and aspirational items such as cars turning cheaper, the decision -- and its timing -- is expected to resonate strongly with the public and give BJP an edge in poll-bound Bihar.