New Delhi [India], September 4 (ANI): BJP MP Bansuri Swaraj on Thursday hailed the GST reforms, calling them an 'economic revolution' and thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the move.

Speaking to the reporters, Bansuri Swaraj said, 'I thank Prime Minister Modi and Finance Minister Nirmala Sitharaman. The Prime Minister has fulfilled what he announced from the ramparts of the Red Fort. He is proclaiming an economic revolution in our country. Congratulations to the Modi government.'

While Delhi Minister Parvesh Verma said that the markets have reacted positively and there is a good response across the country.

A day earlier, Finance Minister Nirmala Sitharaman announced a sweeping reduction in GST, aimed at providing relief to households, farmers, businesses and the healthcare sector.

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. (ANI)