Slashing GST rates on common use items highly commendable, says Haryana CM

Chandigarh, Sep 3 (PTI) Haryana Chief Minister Nayab Singh Saini on Wednesday hailed the GST Council's decision to slash tax rates on common use items, saying it is "highly commendable".

"The decision to reduce GST rates on commonly used items is highly commendable," Saini said.

He urged representatives of both the central and state governments to ensure that the benefits of these rate reductions effectively reach the end consumers.

Saini said that several significant decisions were taken during the GST Council meeting in the national capital and added that the Haryana government has extended its full support to all these decisions.

GST tax rates on common use items ranging from hair oil to corn flakes, TVs, and personal health and life insurance policies were slashed.

The GST Council approved rate overhaul by limiting slabs to 5 per cent and 18 per cent effective from September 22.

Almost all personal use items will see rate cuts as the government looks to boost domestic spending and cushion the economic blow of the US tariffs.

Briefing reporters after a marathon day-long GST Council meeting, Union Finance Minister Nirmala Sitharaman said all decisions were taken unanimously, with no disagreement with any state.

The panel approved simplifying the goods and services tax (GST) from the current four slabs -- 5, 12, 18 and 28 per cent -- to a two-rate structure -- 5 and 18 per cent. A special 40 per cent slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes.

The new rates for all products, except gutkha, tobacco and tobacco products and cigarettes, will be effective September 22 -- the first day of Navratri, she said.

Chief Minister Saini, who also holds the finance portfolio, attended the 56th meeting of the GST Council in New Delhi, which was chaired by Sitharaman who is the GST Council chairperson. The meeting was attended by finance ministers of states and Union Territories, along with GST Council members, an official statement said here.

After the meeting, Saini said that GST rates have been rationalized on food items, healthcare and agricultural equipment, fertilizer inputs, renewable energy, textiles, and other commonly used goods.

He said that this move will provide significant relief to farmers, entrepreneurs, service providers, and the common public.

He said that the reduction in GST on food items will help lower prices, control inflation, and make nutritious food more accessible to the common man.

Saini specifically highlighted the reduction in GST rates on tractors and their parts, stating that this measure will lower input costs for farmers, promote the adoption of modern machinery, and contribute to the modernization of agriculture.

Expressing gratitude to the central government and the GST Council, Saini said that it has been decided to reduce the GST rate on dairy projects such as packaged milk and cheese from 5 per cent to zero.

Similarly, the rate on ghee, butter, and dry fruits is proposed to be reduced from 12 per cent to 5 per cent.

He added that the complete abolition of GST on common food items will provide a significant boost to Haryana's "desi food businesses".

The decisions taken will not only boost Haryana's food processing industry but also strengthen the entire value chain from agriculture to the consumer, he added.

The chief minister described the GST, implemented in 2017 under the leadership of Prime Minister Narendra Modi, as the country's biggest economic reform since independence.

He stated that it has made the tax system simpler and more transparent, eliminated trade barriers between states, and realised the vision of 'One India- One Tax- One Market'.

Saini highlighted that Haryana's net SGST collection has risen from Rs 18,910 crore in the financial year 2018-19 to Rs 39,743 crore in 2024-25, reflecting a remarkable increase of 110 per cent.

Despite having a relatively small population and geographical size, Haryana has emerged as one of the leading tax-collecting states and ranked fifth among the larger states in terms of total gross GST collection for 2024-25, he said. PTI SUN HVA