Dehradun (Uttarakhand) [India], September 4 (ANI): Uttarakhand Chief Minister Pushkar Singh Dhami welcomed the Centre's new generation GST, calling it a 'historic decision' that will benefit everyone, reducing it to two slabs of 5% and 18% and applicable from September 22, 2025.

In a post on X, he said, 'Under the able leadership of the Hon'ble Prime Minister Shri @narendramodi ji, the Central Government's commitment is implementing a new system of GST reforms in the country. Simplifying the GST structure further, now only two slabs of 5% and 18% will apply. This historic decision will not only provide direct relief to common citizens but also empower medium and small industries and small traders with new strength.'

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.

5% slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.

While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.

Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance, no GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare are GST-exempt.

CM Dhami said that this reform will open up new opportunities for the youth and contribute to the state's economic development, and extended his heartfelt thanks to Prime Minister Modi and Finance Minister Sitharaman for this decision, which will have a positive impact on the state's economy and citizens.

'This decision will provide relief to sectors including agriculture, health, education, automobiles, electronics, and others. In a tourism-dependent state like Uttarakhand, this reform will prove particularly beneficial, as reduced tax burden will boost investment, and new employment opportunities will open up for the youth. On behalf of all the residents of the state, heartfelt thanks to the Hon'ble Prime Minister ji and the Union Finance Minister Smt. @nsitharamanji for this historic decision!' added Dhami.

Finance Minister Nirmala Sitharaman on Tuesday announced a sweeping reduction in GST rates on a wide range of essential items, automobiles, agriculture inputs, and electronic appliances. (ANI)