Lanka Dinakar, the Chairman responsible for overseeing the Twenty-Point Programme, recently applauded the new GST reforms. He described them as a pivotal move set to invigorate India’s economy and significantly boost the purchasing power of its citizens.
Speaking at a seminar hosted by the Chartered Accountants Association on Tuesday, Mr. Dinakar highlighted that these transformative reforms are a direct result of the forward-thinking vision shared by Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman.
A major outcome of the 56th GST Council meeting is the streamlining of the GST framework. What was once a four-tiered system (with rates at 5%, 12%, 18%, and 28%) has now been simplified into just two core tax slabs: 5% and 18%.
Mr. Dinakar stressed that these changes are poised to benefit a remarkable 90% of Indian households. This is largely because essential goods like food, medicines, textbooks, as well as crucial items like tractors and small cars, will now be subject to reduced taxation.
Furthermore, he noted that insurance premiums are expected to become more affordable. To ensure these advantages are widely understood and utilized, the government plans to initiate comprehensive awareness campaigns, collaborating with Chartered Accountants, various chambers of commerce, and voluntary organizations.
Reflecting on the past decade’s accomplishments, Mr. Dinakar underscored significant, record-breaking investments across vital sectors such as defense, power, infrastructure, healthcare, sanitation, and housing. These investments, he explained, have been made possible by a surge in government revenues. Addressing potential worries, he clarified that the central government fully compensates states for any revenue deficits incurred due to the GST implementation.
He concluded by stating, “Ultimately, these reforms aim to foster simpler trade practices, lower consumer prices, and ensure that essential goods and services are more readily available and affordable for everyone.”