The next-generation GST reforms represent a significant step towards simplifying India’s indirect tax system. Now people can avail the benefit of GST reforms implemented from yesterday. Under the new structure, the GST council has simplified the earlier four-tier structure of 5 per cent, 12 percent, 18 percent, 28 percent into a two tier structure of 5 percent and 18 percent. By reducing the tax rate on a wide range of goods and services, the reforms will bring substantial relief to citizens  .

Under the Next Generation GST reforms the government has introduced significant tax reductions across the various sectors. In order to bring direct savings to the farmers, the government has brought down the taxes on tractors below 18 hundred CC to 5 percent from the previously taxed 12 percent. While the GST on tractor components has been slashed from 18 percent to 5 percent, reducing the cost of modern farm equipment and making mechanisation affordable for small farmers. Similarly, to provide relief to the common man the tax rates on household electronic items such as Air Conditioners, Dishwashers, and TVs has also been reduced to 18 percent from 28 percent slab. The move is expected to increase demand and expand the market size for domestic producers strengthening production capacity. Talking to Akashvani News, Varnita, a resident of Delhi has welcomed the government’s decision and said that the move will make products affordable for middle class and lower middle class families.

This rationalization under the next generation GST reforms will ease the financial burden on households and also strengthen consumers.