Union culture and tourism minister Gajendra Singh Shekhawat on Monday hailed the implementation of the Goods and Services Tax (GST) reforms, saying it will help different sections of the society.
Speaking at Network18 Reforms Reloaded 2025 summit in Delhi, the union minister said, “GST reforms will help everyone from a farmer to a millionaire in Mumbai.”
Noting that these tax reforms would help people save more money in their pockets, Shekhawat said that the Prime Minister Narendra Modi-led government is focused on taking decisions that are of national interest.
The new GST reforms have come into force from today.
On ‘neo-middle class’
Speaking about the neo-middle class highlighted by PM Modi during his GST reforms address on Sunday, Shekhawat remarked that prior to 2014, ‘Garibi Hatao’ (remove poverty) was wielded only as a political slogan. For the first time, he said, poverty concerns were genuinely taken up after the Modi-led government came to power.
“Neo-middle class is the new people who have entered the middle class segment. It is the aspiring class of our country. The class which has come out of poverty and is now in middle class is called neo-middle class,” he said.
Earlier on Sunday, PM Modi highlighted that the next generation reforms -- to be effective from September 22 -- marks the beginning of a 'GST Bachat Utsav' (savings festival) across India.
He noted that this festival "will enhance savings and make it easier for people to purchase their preferred items." PM Modi noted that the benefits of this savings festival will reach the poor, middle class, neo-middle class, youth, farmers, women, shopkeepers, traders, and entrepreneurs alike.
Why GST was needed?
Shekhawat added that prior to the GST regime, nearly 18 similar taxes were levied separately across different states. "It was leading to over-taxation as well. That’s why bringing GST was important," the minister said, adding that its introduction was meant to support the country’s economy.
GST reforms come into effect on Sept 22
The reform in the Goods and Services Tax (GST) structure was approved during the 56th meeting of the GST Council earlier this month and came into effect today. The four-rate system has now been replaced with a streamlined two-slab regime of 5 per cent and 18 per cent.
A separate 40 per cent slab has been retained for luxury and sin goods.
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