New Delhi [India], September 3 (ANI): After the 56th meeting of the GST Council on Wednesday, Punjab Finance Minister Harpal Singh Cheema said that Punjab demanded that the compensation cess should be increased bu the Centre did not agree.

Speaking shortly after the announcement made by Union Finance Minister Nirmala Sitharaman, Cheema said, 'Now there are three slabs - 5%, 18% and a special slab. One slab has been removed. We said the compensation cess should be increased, but the Centre did not agree.'

In a major reform aimed at providing relief to households, farmers, businesses and the healthcare sector, Finance Minister Nirmala Sitharaman on Wednesday announced a sweeping reduction in Goods and Services Tax (GST) rates on a wide range of essential items, automobiles, agriculture inputs, and electronic appliances. Termed as the 'Next-Gen GST Reform,' the decision comes as a historic Diwali gift to the nation and is expected to ease the cost of living while boosting economic activity.

The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

GST rates on daily essentials items such as hair oil, shampoo, toothpaste, toilet soap bars, toothbrushes and shaving cream have been slashed from 18 per cent to just 5 per cent.

Similarly, butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia and mixtures, utensils, feeding bottles, napkins for babies, clinical diapers and sewing machines will now attract only 5 per cent GST instead of the earlier 12 per cent.

Prime Minister Narendra Modi on Wednesday said that the wide ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses

In a post on X, PM Modi said, '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'

'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,' PM Modi added in his post.(ANI)