PM Modi GST Reforms: What Will Get Cheaper? Mobile, Soap, Computer, More | Full List

PM Modi GST Reforms: Centre's proposed reforms in the Goods and Services Tax (GST) announced by Prime Minister Narendra Modi were one of the major highlights of the 79th Independence Day celebration. PM Modi, on Friday, announced that the Centre is planning to bring major GST reforms by Diwali this year.

The Centre has proposed revising the GST slabs to keep only 5% and 18% rates, with sin goods and luxury items, such as cigarettes and tobacco products, being placed in the 40% slab, as reported by the news agency Press Trust of India (PTI) on Friday.

What Will Get Cheaper?

The Centre has proposed shifting nearly 90% of the items currently in the 28% slab to the 18% slab. The list of items includes daily-use products, electronic items, etc. Only those items that will be shifted from the 28% slab to the 18% slab will see a drastic reduction in their price, because of the lesser GST imposed on them. Here is a list of potential items that will get cheaper after the GST revision.

-Agricultural products.
-Fertilisers
-Construction items
-Handcrafts
-Automotive
-Hair oil
-AC
-Computer
-Sewing machine
-Water filter
-Vaccines
-Bicycles
-Electric Irons

The list is tentative and the number of items which may get cheaper after the implementation of proposed reforms would be higher. Products like diamonds and precious stones and other labour intensive materials may be taxed at the same rate. Petroleum products have been kept outside the revamped GST regime, added PTI in its report.

All About Proposed GST Reforms

Prime Minister Narendra Modi, on Friday, had announced a 'Diwali Gift' for people by announcing a revision of GST reforms and slabs. He said that the GST reforms to change the slabs would significantly lower the existing rates.

"I am going to give a great gift this Diwali. Over the past eight years, we implemented a major GST reform and simplified taxes. Now, the time has come for a review. We have conducted it, consulted with states, and are set to introduce a 'next-generation GST reform," said PM Modi in his Independence Day speech on Friday.

The proposed GST reform include rationalisation of tax rates. The move would benefit all sections of society, especially, the common man, women, students, middle class, and farmers, stated Ministry of Finance in a press release. The changes and improvement in the existing GST slabs have been proposed considering three main aspects, ie structural reforms, rate rationalisation, and ease of living.

The government has proposed correction of inverted duty structures to align output and input tax rates. This would not only support domestic value addition, but would also lead to reduction in the accumulation of input tax credit.