GST reforms to bring big relief to people who suffered huge tax burden under Cong: BJP

New Delhi, Sep 6 (PTI) The GST rate cuts will not only benefit the common people but also boost India's economy, Union Minister Ashwini Vaishnaw asserted on Saturday and hit out at the Congress, alleging "heavy tax burden" during its rule.

He also asserted that the government is keeping a "close watch" to ensure that the benefits of the GST rationalisation are passed on to the common people.

The GST Council's decision to bring all products, except those under the sin and luxury goods category, under 5 per cent and 18 per cent slabs, while reducing it to zero on a host of essential items, will come into effect from September 22, the first day of Navratri.

Addressing a press conference at the BJP headquarters here, Vaishnaw said, "The coming 22nd, the first day of Navratri, will bring a new happiness for all of us, for all middle-class families and for 140 crore citizens of this country." The GST reforms will also serve as a catalyst in the economic development of the country, he said "This reform has brought a big relief to the lives of 140 crore people of the country. Before 2014 (during Congress rule), there was a huge burden on common people due to the web of different types of taxes imposed on every item," the Information and Broadcasting Minister said.

Vaishnaw said the latest GST reforms and income tax exemption up to Rs 12 lakh announced earlier reflected Prime Minister Narendra Modi's commitment to the welfare of common people, including middle-class families, in the country.

Asked if the GST reforms are aimed at mitigating the impacts of the US tariffs on Indian goods, the minister said, "This has been done with the feeling that a very good transformational change should come in the lives of common people." "No external factor has any role in this," he asserted.

The BJP leader said the government was working on the GST reforms for about one and a half years, with the prime minister continuously following up exercise and giving "guidance" at every step.

"This is a very important decision taken by Prime Minister Modi. He had given a new confidence to the country from the ramparts of the Red Fort. He has converted that resolve into reality with this announcement," he said.

Addressing the nation on Independence Day, Prime Minister Modi had announced that the GST rates will be lowered by Diwali, bringing down prices of everyday use items.

"This Diwali, I am going to make it a double Diwali for you," the prime minister had said.

On US President Donald Trump calling India-US ties "special" and Modi's response to it, Vaishnaw said India is seen in the world with a "new hope, trust and confidence" due to a "comprehensive" foreign policy of the country under the leadership of the prime minister.

"America is a very big democracy. India is the mother of democracy. It is natural that these two democracies have a good relationship between them," he said.

The prime minister has given a "new shape" to India's foreign policy, keeping in mind national interest and the interest of the people of the country, Vaishnaw said.

On Congress leader Jairam Ramesh asking the government to ensure that the rate cuts do not benefit only a "favoured few" after it "virtually" abolished the National Anti-profiteering Authority earlier this year, Vaishnaw hit back, "The Congress should talk about its term." The Modi government does not work on "dhul-mul" (irresolute) policies as the Congress did during its term, he said.

"You all know about the prime minister's style of working. The prime minister has taken clear decisions and also implemented them. You will see it in this also. People will be benefited by it (GST reforms)," he added.

Vaishnaw underlined that Finance Minister Nirmala Sitharaman has "clearly" said she will keep a "hawk's eye" with a "very clear focus" on making sure that the benefits of the GST rate rationalisation reach the "common people and every family".

"And, a very close watch is being kept", he said.

The finance minister has "clearly" said that strict action will be taken against those not passing on the benefits of the GST rate cuts to the people, he added.

Citing media reports, Vishnaw said that "almost" all the trade associations have clearly said that the benefits of the GST reforms will be passed on to the common people. PTI PK SHS RT RT