It’s important to keep up with the changing taxation and GST rules in the country and know the benefits of these new rules. Our Indian Prime Minister Narendra Modi also addressed the nation on Sunday, one day before the new GST rules, or GST 2.0, came into effect. He also spoke about how the middle class would save a lot from these new rules, and also the new tax guidelines that were introduced earlier. Read on to know about it.
1. The GST 2.0 will make many things affordable, and it has been applied to around 375 items, which cover major items of utility like medicines, kitchen appliances, food items like paneer, butter, snacks, ketchup, jam, dry fruits, coffee, and ice cream, among others.
2. PM Narendra Modi has requested Indians to only buys goods made in the country after the new GST rules as it would benefit the businessmen and open gates for them in terms of foreign investments.
3. Now there would only be a two-slab system of 5% and 18% and the 12% and 28% rates would no longer be applicable.
4. Low prices of various items after the new GST rules would also increase demand, which in return can give rise to the production. Growth is expected in various sectors.
5. Healthcare would be more affordable as GST on some medicines to been reduced to 5% or nil.
6. If you are looking to buy a home, this could be the time for you. GST on buying houses have been reduced from 28 % to 18%.
7. As per the Prime Minister, the GST 2.0 would also help the SME’s (Small and Medium Enterprises) to grow.
Also Read: Who Is Adaso Kapesa? The First Female Guard Looking After PM Narendra Modi’s Security?
8. The Government also believes that the demand of Indian Goods would also be beneficial for the country to deal with the effects that the US tariffs will have on merchandise exports.
9. Now there would only be a two-slab system of 5% and 18% and the 12% and 28% rates would no longer be applicable.
10. The new GST rules have reduced the rates on educational sector also. The GST on educational items have been reduced from 12% to 5%, as per the reports.