GST Bachat Utsav announced by Prime Minister Narendra Modi which commenced on 22nd of last month is benefiting all sections of society. The next-generation GST reforms represent a significant step towards simplifying country’s indirect tax system. The reforms are bringing substantial relief to citizens by reducing the tax rate on various goods and services.
Under the Next Generation GST reforms, the government has brought down the tax rate on small cars from 18 percent to 28 percent in order to provide relief to consumers. This move will reduce the financial strain on middle class families that will stimulate the sales of small cars in smaller cities and towns. Meanwhile the GST council has reduced tax rate on two wheelers upto 350cc to 18 percent which earlier was the part of 28 percent tax slab.
The tax reduction will not just benefit buyers but will also generate employment opportunities in manufacturing and related sectors. With the new GST rates coming into effect, the government will create a ripple effect on the nations’ economy.