NEW DELHI: Prime Minister Narendra Modi on Wednesday hailed the next-generation GST reforms, which he said would improve the lives of citizens and ensure ease of doing business for all, especially small traders and businesses.“During my Independence Day Speech, I had spoken about our intention to bring the Next-Generation reforms in GST. The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy,” PM Modi said.He further said: “Glad to state that GST council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts & reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth. The wide-ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses.”

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Finance minister Nirmala Sitharaman on Wednesday announced major Goods and Services Tax (GST) rate cuts, saying that with the two-tier tax rate system approved, the common man will benefit greatly. The GST Council approved the two-tier rate structure of 5% and 18%.

What gets cheaper?

The GST rate rationalisation will be implemented from September 22, according to a PTI report. “For common man and middle class items, there is a complete reduction from 18% and 12 to 5%. Items such as hair oil, toilet, soap bars, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware and other household articles are now at 5%,” FM Sitharaman said. “UHT milk, paneer, all the Indian breads will see nil rate,” she added. The 56th Goods and Services Tax (GST) Council meeting commenced on Wednesday to review potential rate reductions and category adjustments for numerous items under the indirect taxation system.