Lucknow, Sep 18: Uttar Pradesh Chief Minister Yogi Adityanath on Thursday praised the recent GST reforms as a “Diwali gift” from Prime Minister Narendra Modi, highlighting their potential to ease costs for consumers, boost trade, and strengthen India’s economy.
Speaking at a press briefing, CM Yogi emphasized that the reforms, effective from September 22, coinciding with Sharadiya Navratri, will benefit citizens, farmers, businesses, and ordinary families across the country. He expressed gratitude to PM Modi and Union Finance Minister Nirmala Sitharaman for the landmark decision.
The Chief Minister explained that the GST structure has been simplified from four slabs 5%, 12%, 18%, and 28% to two main slabs: 5% and 18%, while luxury items will continue to attract a 40% rate. This move, he noted, will significantly reduce tax burdens on everyday household items such as milk, curd, cheese, toothpaste, soap, bicycles, and baby products, improving purchasing power and stimulating demand.
Highlighting benefits for farmers and rural India, CM Yogi said taxes on tractors, tyres, pesticides, and irrigation equipment have been cut to 5%, reducing farming costs and promoting productivity. Healthcare costs will also decline, with GST on personal life and health insurance abolished and rates on medicines, oxygen, and testing kits reduced.
The reforms extend to education and automobile sectors as well, with GST on notebooks, pencils, and other educational materials fully removed, and GST on cars and bikes reduced from 28% to 18%, boosting consumption and employment in the automotive industry. Conversely, GST on harmful products like tobacco and pan masala has been raised to 40%.
CM Yogi highlighted improvements in ease of doing business, faster refunds, auto-approvable tax registrations, and risk-based compliance, noting that India’s GST collection has surged from Rs 7 lakh crore in 2014 to Rs 22.8 lakh crore, and the number of taxpayers has more than doubled to 15.1 million.
He further stressed the broader impact of tax reforms, citing major infrastructure growth, including airports, metro networks, and Vande Bharat trains, as well as exponential growth in defence production and exports. Welfare schemes such as DBT, PM Awas Yojana, and the Pradhan Mantri Garib Kalyan Anna Yojana have also benefited from increased tax revenues.
Focusing on Uttar Pradesh, CM Yogi stated that the state, India’s largest consumer market, stands to gain substantially from these reforms. Revenue has increased from Rs 49,000 crore pre-GST to Rs 1.15 lakh crore now, aiding the expansion of expressways, metro systems, and airports. Industries such as peppermint, footwear, readymade garments, and One District One Product (ODOP) will particularly benefit, with organic menthol taxed at just 5%, giving a boost to farmers and local businesses.
CM Yogi concluded that these reforms are not merely tax changes but a historic step toward simplifying the tax system, enhancing economic growth, and improving livelihoods across India.