Traders felicitate Finance Minister for 'historic' GST reform

New Delhi, Sept 4 (PTI) Union Finance Minister Nirmala Sitharaman was on Thursday felicitated by a delegation of traders, who hailed the GST rate revision.

The delegation led by Chandni Chowk MP Praveen Khandelwal, who is also the national general secretary of the Confederation of All India Traders (CAIT), thanked and felicitated Sitharaman and Minister of State for Finance Pankaj Chaudhary during the meeting.

All the seven BJP Lok Sabha MPs from Delhi including Harsh Malhotra, Manoj Tiwari, Ramvir Singh Bidhuri, Bansuri Swaraj, Kamaljeet Sehrawat, Yogender Chandolia and Khandelwal, also met the finance minister and her deputy and thanked them.

The traders lauded the Goods and Services Tax (GST) rate cuts as a "historic" move that will boost small businesses and the country's economy.

In a post on X, Khandelwal said that over 400 products moved from the 12 per cent and 18 per cent tax slabs to 5 per cent, which will reduce their prices by 15-20 per cent after the new GST slabs are implemented. "This will ease living, boost consumption and strengthen the economy," said the BJP MP.

"The entire trader community is deeply grateful to Prime Minister Narendra Modi and Finance Minister Sitharaman for the visionary decision," he added.

In a statement, the CAIT said the GST reform will benefit small traders, consumers and the economy by simplifying the tax structure.

Citing a State Bank of India report, Khandelwal said that the GST reform will lead to a significant increase in domestic consumption. The report estimates that consumption may rise 7-8 per cent during the upcoming festive season, benefitting retail trade and small shopkeepers, he added.

The GST Council, in its meeting on Wednesday, simplified the goods and services tax from the current four slabs to a two-rate structure -- 5 and 18 per cent. A special 40 per cent slab is also proposed for a select few items including high-end cars, tobacco and cigarettes.

The GST tax rates on common-use items ranging from hair oil to corn flakes, televisions, and personal health and life insurance policies were slashed. Life and health insurance have been exempted from the GST, which earlier attracted 18 per cent tax. PTI VIT VIT RUK RUK